KPMG has cut 500 jobs, according to a report from The Australian. The layoffs, reported on Wednesday, 19 August 2026, come as the firm trims its workforce, but the cuts reportedly spare employees linked to past audit failures.
The Australian reports that the job reductions target 500 staff members. However, those who were involved in the audit issues that have drawn scrutiny are not among those let go, per the outlet. The decision leaves those workers in place while other parts of the business absorb the losses.
The report does not specify which divisions or roles were affected by the cuts, nor does it detail the nature of the audit problems referenced. The Australian’s coverage points to a deliberate choice by KPMG to shield the audit culprits from the layoffs, even as the broader firm reduces headcount. This distinction is notable given the regulatory and reputational pressure that has followed audit scandals in recent years.
The timing of the announcement, mid-August 2026, suggests the firm is acting now to adjust its staffing levels, though the exact reasons for the reduction are not outlined in the available material. The Australian’s headline frames the move as a direct contrast between who is losing their job and who is keeping it.
What to watch next is whether KPMG faces further backlash for protecting staff tied to audit failures, and if regulators or clients respond to the reported decision.
