Adelaide services hub to close as PwC makes cutbacks
PwC Australia will cut more than 300 jobs as work dries up across the audit and consulting giant, with one of its services hubs set to take the brunt of the losses.
PwC Australia will slash 338 jobs across the audit and consulting giant and wind up its Adelaide-based services hub in the latest round of cutbacks across the sector amid a gloomy period for the firm.
Staff were told about the cuts on Wednesday morning, coming as PwC faces a loss of new business in the wake of the tax scandal that engulfed the firm amid a broader evaporation of work for the consulting sector.
PwC’s management characterised the cuts as “pragmatic action”, with chief executive Kevin Burrowes warning the firm was making “extremely difficult decisions”.
“My thoughts are with all of those people and their families impacted by the changes we have been forced to make,” he said.
“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.”
PwC has faced public condemnation after it was revealed the firm used confidential government tax briefings to create strategies for its tech clients.
The cuts will fall heaviest at PwC’s Adelaide-based Skilled Services Hub, where 141 roles will be made redundant.
The Skilled Services Hub had been a key project for PwC’s former CEO Tom Seymour, alongside the former South Australian government.
A further 201 staff from the hub will be rolled into PwC’s national workforce teams as PwC moves to wind up the operation, which has been based in separate offices to the local firm.
Staff will move from the site, while PwC’s former government consulting business Scyne Advisory will take possession.
In addition, another 197 staff will be cut at the firm across its national footprint in a move, PwC said the cuts were “in response to the reduction in the size of the business, the firm’s changing portfolio and strategic areas of focus, and economic headwinds”.
PwC said beyond some jobs in the Skilled Services Hub, no audit roles were being cut.
Included in the redundancy figures are 75 staff recently sent back to PwC from its spin-off government consulting business Scyne Advisory.
Scyne Advisory announced last week it was sending 78 staff back to PwC, with many based at the Adelaide services hub, as government work tailed off amid delays in securing approval for its sale.
PwC had initially announced it was standing down the staff pending a further announcement about their position.
The firm said it “attempted to find alternative positions for these impacted staff within PwC, however, this was not always possible or desired by the individual given their client work, areas of expertise or skills”.
PwC agreed to sell its government consulting business, Scyne Advisory, to private equity player Allegro Funds in a $1 transaction which secured approval from the Foreign Investment Review Board on Monday.
That deal completed on Wednesday with a two-day handover to complete the split.
Scyne Advisory managing partner Richard Gwilym said the consulting business faced a “new dawn” on Monday.
“We know the challenges that have led to our establishment are not unique, and the industry needs to change, and we are at the forefront of that change,” he said.
PwC also said it would proceed with its next round of graduates in its assurance and financial advisory businesses.
However, consulting graduates have been asked to defer their start date at PwC by six or 12 months.
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