{"text":[[{"start":8.92,"text":"KPMG’s Australian operation will let go of hundreds of workers and cut average partner pay by 13 per cent, saying growth is likely to remain “subdued” for at least two years following an audit scandal."}],[{"start":21.24,"text":"The Big Four firm has been in turmoil for months after allegations that some of its most senior audit partners used confidential client documents to win new contracts."}],[{"start":30.36,"text":"The revelation, alongside allegations that the firm mishandled a whistleblower complaint about the issue, has triggered a political crisis and the exit of most of its top executives in Australia."}],[{"start":41.6,"text":"The impact has been a sharp downturn in consulting work after public-sector organisations put a freeze on new business and some longstanding corporate clients said they would end contracts with KPMG."}],[{"start":52.48,"text":"The firm said on Monday it would cut 360 employees and 27 partners, mostly in the consulting division."}],[{"start":59.68,"text":"It will restructure some of its teams, including its mid-market and deal advisory operations, to better align with KPMG’s international services. The firm has about 9,000 staff in Australia."}],[{"start":71.4,"text":"KPMG also said it would cut average equity partner pay by 13 per cent as a soft outlook and cuts to government work meant its consulting revenue for the year dropped almost 17 per cent."}],[{"start":82.84,"text":"The firm had increased its average pay by 10 per cent last year to A$715,000 ($512,000), according to local media. KPMG declined to say what the average pay would be after the cut."}],[{"start":96.28,"text":"John Sams, who was appointed as chief executive of KPMG Australia last month to steer the firm out of the crisis, said growth was expected to remain “subdued until at least 2028” due to a combination of AI adoption among its clients and the impact of the audit scandal."}],[{"start":112.96,"text":"“The professional services sector is . . . changing rapidly as client expectations evolve, AI reshapes the way services are delivered and government spending on consultants remains lower,” he said. “We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.”"}],[{"start":129.84,"text":"Gary Wingrove, the incoming chief executive of KPMG International who previously ran the Australian arm, and Bill Thomas, the current chief executive of the global firm, have toured the firm’s offices in Sydney, Melbourne and Brisbane in recent weeks to meet partners ahead of the restructuring announcement."}],[{"start":148.4,"text":"KPMG executives appeared in front of a Senate committee this month to answer questions on how the client document data was misused. On Monday, the firm said multiple internal and external reviews were set to finish in the coming months and would influence the next phase of its “action plan” adopted in the wake of the scandal."}],[{"start":167.08,"text":"KPMG’s total revenue for the year to the end of June dropped 1 per cent to A$2.3bn ($1.6bn), although the full impact of the consulting slowdown and lost work is likely to emerge in the next financial year."}],[{"start":185.04,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787557768_5125.mp3"}