PwC confirms 329 redundancies and accelerates retirement for 37 partners
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More news: PwC Australia has confirmed that it will make 329 roles redundant and up to 37 partners will be accelerating their retirement over the next nine months, impacting all lines of service and support functions.
The company said that it is reconfiguring its management leadership team by adding a chief information officer and chief financial officer, to simplify the executive level and bring closer alignment to the firm's technology and finance functions.
PwC Australia said it will continue to hire people, including graduates and offers made to new starters. It will also appoint new partners on 1 July, in line with its strategic growth plans.
All impacted staff will be contacted over the next few days, while some will be invited to apply for new roles created by the changes in the company's business structure.
The layoffs follow the publication of PwC Australia's "Commitments to Change" strategy, in response to an independent review into the company's highly publicised tax scandal, which uncovered the consultant’s use of confidential information about tax avoidance legislation to win new business.
What they said: PwC Australia CEO Kevin Burrowes said: "This has been a very challenging and complex process, but an important one, as we realign our business structure with our new long-term strategy.
"I’m extremely proud of the contribution every individual at PwC Australia makes to this firm and their ongoing commitment to producing exceptional results for our clients.
"We acknowledge that days like today are especially difficult for those affected, as well as their teams and colleagues. I can assure you that we will work closely with impacted individuals to ensure they are aware of their options and next steps.
"At its heart, this reorganisation will make the firm a more simplified, efficient and centre-led business, enabling us to continue delivering the highest quality of service to our corporate and private sector clients."
PwC Australia to cut 400 jobs in cost-cutting push: AFR
The news: The Australian Financial Review has confirmed that PwC will announce a wave of redundancies on Wednesday, after partners were made aware of the cost-cutting drive during a webcast at 5pm on Tuesday evening.
The numbers: 400 roles will be made redundant as part of the restructure, amounting to over 5% of the firm's 7,200 workers. The firm aims to reduce its costs by $100 million amid a consulting slowdown.
The context: According to the AFR, the restructure, which has been codenamed Project Maple, will centralise back office and other support functions that had been split across PwC’s three divisions. The cuts will largely come from duplicated support roles and the firm’s consulting group. Project Maple will also involve other cost-cutting measures, with the possibility of more layoffs down the line remaining.
In addition to a consulting downturn, PwC has been embroiled in a damaging tax scandal, which uncovered the consultant’s use of confidential information about tax avoidance legislation to win new business.
Instagram page @theaussiecorporate shared rumours about the incoming cuts at around 6:30pm AEDT last night.
The source: Australian Financial Review
