- PwC is cutting more than 330 jobs
- The company is embroiled in a scandal
- READ MORE: New CEO of PwC
‘Big Four’ accounting firm PwC is cutting more than 330 jobs in the wake of the scandal over the leaking of confidential government tax information.
The company on Wednesday blamed “economic headwinds” for the closure of its consultancy “skilled service hub” in South Australia, which will see the elimination of 141 jobs and a further 200 cuts across the country.
As part of a change to the company’s ‘portfolio and strategic focus areas’, 200 more employees will be redeployed to Adelaide.
PwC has been embroiled in controversy after it emerged that former tax partner Peter Collins had leaked sensitive and confidential government information to fellow partners and clients.
‘Big Four’ accounting firm PwC has announced it will cut more than 330 jobs across its operations
Mr Collins has since been banned from acting as a tax adviser, and the Federal Treasury has referred the scandal to the Australian Federal Police for a criminal investigation.
In June, PwC announced it would divest all of its federal and state government businesses for just $1 exclusively to Allegro Funds.
PwC’s government advisory division was responsible for approximately 20 percent of the company’s revenue in fiscal 2023.
A spin-off company, Scyne Advisory, was set up to save 75 jobs, but all those jobs will now be axed.
Staff were encouraged to seek alternative employment within PwC Australia, but the firm said this was ‘not always possible or desired by the individual’.
The partnership’s CEO Kevin Burrowes outlined the job cuts for staff and partners on Wednesday morning.
“These are extremely difficult decisions and my thoughts are with all those people and their families who have been affected by the changes we have been forced to make,” Burrowes said in a statement.
“While we are optimistic about the future, PwC must take pragmatic action to meet these challenges and make difficult decisions to meet the needs of its clients and ensure the long-term success of the business.
Tom Seymour (pictured) stepped down as CEO of the consultancy in May after it emerged that he had received emails from former tax partner Peter Collins containing confidential information about the Treasury.
“In South Australia and across the country, we will continue to serve our customers with the highest level of quality and professionalism – and we are grateful to our people for the resilience and dedication they have shown to their customers.”
Graduates who will start working in PwC’s consultancy sector next year can voluntarily defer their position for six to twelve months.
As federal and state governments review their reliance on consultants, the other Big Four firms Deloitte and KPMG have also cut headcount this year.
In the wake of the tax leak scandal, Burrowes took over from Kristin Stubbins after former CEO Tom Seymour resigned in early May.
Mr Seymour resigned after it emerged he had received emails from Mr Collins containing confidential information about the Treasury.
Nine PwC partners were instructed to go on leave immediately around the same time Mr Seymour resigned last month.
