A major consultancy firm under fire for misconduct in its audit business is cutting its local workforce following a suspension from applying for new government contracts.
KPMG’s U.S. headquarters at Two Manhattan West. Photo via Emily Louick Photography and Entropy Film Works Inc.KPMG - one of the "Big Four" accounting firms alongside Deloitte, PwC, and EY - revealed on Aug. 24 that its annual revenue dipped 1 percent to $2.26 billion (US$1.62 billion) in fiscal 2026. The firm also warned of a rocky road ahead, with new CEO John Sams noting, "We expect difficult market conditions to continue in financial year 2027 and beyond."
A combination of soft market conditions and a continued drop in government reliance on consultants drove a 16.9 percent revenue decrease in KPMG's consulting business. However, the firm saw growth elsewhere, with revenue for its audit and assurance and its tax and legal arms rising 11 percent and 10.9 percent, respectively.
Following a review of its operating costs and the fallout from recent conduct and whistleblower controversies, KPMG will cut its workforce by 5 percent. The reduction will primarily impact the consulting and business services divisions, eliminating 27 partner roles and approximately 360 employees.
Despite overall revenue falling short of expectations, Sams noted that four out of the firm's five businesses grew. "This result reflects the resilience of our business and, above all, the commitment of our people in a very challenging year," he said. "We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the fut
