Coronavirus hit brings 400 job cuts at PwC

PwC’s financial advisory, consulting and support sectors cuts account for 5pc of the firm’s Australian workforce.

In a statement, the firm on Wednesday said it expected “significant volatility to continue for at least the next 12 months.

PwC will cut 400 employees in the financial advisory, consulting and support sectors of the business as the COVID-19 pandemic reduces demand for the big four firm’s services.

The cuts, which account for about 5 per cent of the firm’s Australian workforce, were announced on Wednesday afternoon.

The process will be completed by the end of July and impact partners as well as standard employees, with some staff to be made redundant and some partners to take retirement.

“PwC Australia, like all businesses, has been responding to the COVID-19 crisis and the impact it is having on our clients and our market and today we updated our people on the next stage of our response, reflecting the economic outlook for Australia,” PwC CEO Tom Seymour said on Wednesday.

“We do not underestimate the impact this has on our people and we will work through this process as thoroughly and quickly as possible to bring our people certainty.”

The economic downturn caused by the coronavirus pandemic has seen a sharp drop-off in demand for some of PwC’s services, with Mr Seymour projecting revenue growth to be between zero and negative 20 per cent.

In a bid to control costs, Mr Seymour in April reduced a majority of employees to a four-day work week under the “reduced working week program,” reducing the annualised pay of most staff by 4 per cent. Partners have had their income reduced by 30 per cent or more.

PwC on Wednesday said that the program would not be extended beyond June 30, with all employees to be returned to their usual working arrangements from July 1.

Promotions and associated pay rises at the firm will resume in the new financial year.

In a statement, the firm on Wednesday said it expected “significant volatility to continue for at least the next 12 months”.

Other big four firms have taken measures to reduce the coronavirus pandemic’s impact on their bottom line.

In May, KPMG cut almost all staff pay between May and August by 20 per cent, equating to a 7 per cent annualised reduction. Partners have taken a pay cut of 17 per cent.

Deloitte has cut annual pay by 8 per cent with partners taking at least a 20 per cent hit, while EY has reduced the pay of non-fully utilised staff by 5 per cent annually, while partners have seen cuts from what they can draw from the firm.