We received a tip this morning:
Australia getting cucked
The nation’s once dominant consulting firm, PwC Australia, will cut 344 roles, or more than 4 per cent of its 8000-strong workforce, as fallout from its tax leaks scandal and the economic slowdown reduce demand for its services.
Affected staff were told on Wednesday they were being made redundant. The cuts mean PwC will effectively shut down its Adelaide-based Skilled Service Hub. That will make 141 staff redundant, while another 197 staff across the firm will also be cut. Another six PwC staffers who declined to move to Scyne are being terminated and will not be eligible for statutory redundancy because they were offered like-for-like roles.
Included in the redundancies are the majority of the 78 staff who were initially set to join spin-off Scyne but were instead sent back to PwC last month.
Scyne is the government consulting business the firm sold off to Allegro Funds for a single Australian dollar (67 freedom pennies) in June. “We have taken this step because it is the right thing to do for our public sector clients and to protect the jobs of the 1,750 talented people in our government business,” said PwC Australia Board Chair Justin Carroll on the deal when announced by the firm. “This transaction will result in the first pure play, at scale, government business in the market. This was an extremely difficult decision, but we are determined to take all necessary steps to protect the jobs of our people and re-earn the trust of our stakeholders.”
The Australia cuts come just a day after it was reported PwC UK will be asking 600 people to voluntarily quit (and firing them if they don’t, obviously).
PwC Australia reported revenue of $3.4 billion ($2.2 billion USD) for the fiscal year ended June 30, 2023 with underlying revenue growth of eleven percent. FY23 annualized partner pay ranged from $374,000 to $4,043,000 (former CEO Tom Seymour’s take home); average partner income declined by 12 percent versus 2022. Despite the slowdown in client demand and all the messy scandal stuff PwC Australia has been dealing with all year, consulting saw 12 percent growth.
PwC reported global gross revenues of $53.1 billion USD a couple weeks ago.
Said PwC Australia CEO Kevin Burrowes in a statement:
“These are extremely difficult decisions and my thoughts are with all of those people and their families impacted by the changes we have been forced to make.
“While we are optimistic about the future, PwC must take pragmatic action to manage these challenges and make difficult decisions to meet the needs of its clients and to ensure the long-term success of the firm.
“In South Australia and across the rest of the country, we will continue to serve our clients with the highest degree of quality and professionalism – and we are grateful to our people for the resilience and dedication they have shown their clients.”
PwC cuts hundreds of jobs as scandal, slowdown hit [AFR]