KPMG appoints new CEO as massive job cuts loom

The board of KPMG Australia has appointed John Sams as chief executive effective immediately as the embattled firm prepares to cut hundreds of employees to counteract the loss of business from the whistleblower scandal.

Sams is from the tax, corporate finance and infrastructure advisory side of KPMG’s business which has not been implicated in the scandal where some of the firm’s most senior executives allegedly accessed confidential client information to win new customers.

“The Board believes that John has the strong attributes required to be the firm’s successful leader – including agility, courage and integrity,” independent chairman Michael Ebeid said.

“John has a clear mandate from the board: to strengthen leadership and culture, improve confidence with our people, clients, regulators, government and the Parliament, and focus KPMG on the areas where it can make the greatest contribution to our clients, people and stakeholders.”

Job cuts were not expected to be finalised until the new CEO was appointed and is not just in response to the scandal.

A KPMG spokesman said it continues to evaluate a range of options to ensure the firm remains well positioned for the challenges ahead.

“As part of our planning for FY27, we are reviewing our operating model, cost base and workforce needs. No decisions have been made regarding any specific measures or any potential impact on roles. We recognise that discussions of this nature can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way.”

All four of the major consulting giants have been cutting staff in response to a weaker economic environment and falling revenue from federal government business which has been the single biggest customer for these firms - especially KPMG.

“I do not underestimate the task ahead but commit to our clients and people that I am prepared to be courageous, take the tough decisions and lead the changes we need to set us on the right path,” Sams said.

“The firm fell short of the standards rightly expected of us, and the accountability for these failures will continue to be implemented. We have serious work to do on our culture, our leadership and our governance and it will take resolve and endurance.”

KPMG is under intense scrutiny after admitting that some of its staff accessed confidential information from corporate clients to win business – a serious breach of trust in the world of auditing that is essential to the integrity of financial markets.

KPMG’s former CEO Andrew Yates and chairman Martin Sheppard resigned in the wake of the scandal, along with many senior audit partners. One of its most significant audit clients Lendlease is preparing to dump KPMG as its long-time auditor and its business with federal and state governments is under review.

The allegations were first raised to the firm in 2024 but did not become public until Labor senator Deborah O’Neill aired them in March this year.

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