KPMG is negotiating with senior partners who may face cuts as part of a planned staff purge triggered by a whistleblower scandal alleging misuse of confidential client information to win audit work.

Senior leadership departures have occurred, including former CEO Andrew Yates and former chairman Martin Sheppard, along with other senior audit executives.

Regulators have broadened scrutiny as the Australian Securities and Investments Commission widens its investigations to KPMG-controlled entities and possibly their directors who served on boards after the 2024 complaint.

CEO John Sams says the subdued outlook reflects continued restrained client investment and longer decision cycles in the economy.

The article notes that more information is forthcoming.

KPMG will not bid for new federal government work until September 30, 2026, as governance, culture, ethics, and integrity reviews proceed.

The firm plans to simplify its structure to create more integrated teams aligned with global advisory services while these reviews are completed.

Allens’ December 2025 document claimed staff denials were credible and did not warrant deeper review of mailboxes or communications, raising questions about thoroughness.

Westpac’s general counsel provided the first comprehensive explanation of the allegations on May 13, framing them as fully investigated and not substantiated at that time.

Sams expressed frustration and apologized for ongoing speculation and uncertainty among staff, noting that no further comments could be made until decisions are finalized.

Internal and external reviews will guide the firm’s next actions as it works to rebuild trust, support employees, and strengthen client services as part of a broader reform plan.

The narrative notes that the firm faces scrutiny for its handling of the process during parliamentary proceedings.