Consulting giant PriceWaterhouseCoopers has announced it will lay off 329 staff in an effort to “simplify” its business, following the termination of more than 300 jobs in November last year when Westpac ended its 55-year partnership with the company.
It will also accelerate the retirement of 37 partners. These layoffs amount to about five percent of its Australian workforce.
The firm’s 7,200 staff were informed of the layoffs at midday on March 13, which are expected to occur over the coming nine months.
This brings the total number of employees whose careers with one of the “Big Four” firms brought to a premature end to around 1,200.
Optimal Structure
PwC Australia CEO Kevin Burrowes said it was part of an effort to realign the firm’s business into an “optimal structure.”“This has been a very challenging and complex process, but an important one,” he said.
“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.”
The firm aims to save $100 million in ongoing costs through these measures. PwC will also consolidate business units and reconfigure its executive structure to include a chief information officer and chief financial officer. Those made redundant will, where possible, be invited to apply for new roles created by the structural changes.
Confidentiality Breach
The company’s cost-cutting efforts come in the wake of a scandal last year when former tax partner Peter-John Collins was revealed to have passed on confidential Treasury information to boost private sector business for the firm.The company has since been the subject of investigations by the Tax Practitioners Board and the Australian Federal Police.
In June, PwC sold off its government consulting business for $1 to a private equity fund and a month later, eight partners were laid off, including former CEO Tom Seymour.
Additionally, the company’s Skilled Services Hub in Adelaide was closed as part of the restructuring, resulting in the loss of 141 jobs.
“We acknowledge that days like today are especially difficult for those affected, as well as their teams and colleagues,” Mr. Burrowes said.
“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.”
The changes follow a major review of PwC’s governance structure by corporate veteran Ziggy Switkowski.
