PwC Australia to undertake further job cuts amid restructuring following scandal

PwC Australia declared on Wednesday its intention to implement further staff reductions, amounting to an additional 329 positions, as part of a significant restructuring initiative following a nationwide scandal.

This move follows a controversy wherein a former partner leaked government tax plans, resulting in profound repercussions for the company.

The latest downsizing constitutes around 5 percent of PwC Australia’s workforce, with up to 37 partners slated to hasten their retirement within the next nine months.

CEO Kevin Burrowes underscored the importance of this restructuring, remarking, “This has been a very challenging and intricate process, yet a crucial one, as we reorganize our business framework in alignment with our new long-term strategy.”

This statement underscores the imperative for PwC Australia to adjust to the changing landscape following the scandal, which severely impacted the company’s reputation and necessitated decisive measures.

These recent job cuts exacerbate the effects of previous reductions, with 338 positions slated for elimination in November.

Since the scandal unfolded in January 2023, PwC Australia has been undergoing significant transformations.

Notably, the company divested its government consulting arm to private equity firm Allegro Funds for $0.66, leading to the establishment of a new entity called Scyne Advisory.

Around 1,400 employees transitioned to the newly formed entity as part of this restructuring.

In response to the staff reductions, PwC Australia reaffirmed its commitment to supporting affected employees.

The company indicated that those who lost their jobs would be encouraged to apply for new positions created through the restructuring efforts.

Additionally, there will be no halt in hiring, and new partners are expected to be appointed in July, signaling the continuation of the firm’s operations and growth trajectory.

The scandal that precipitated these developments involved a former partner who leaked government tax plans, exploiting them to secure work with global companies seeking to restructure their Australian tax affairs.