Major Job Cuts at PwC Australia Amid Market Slowdown

One of Australia’s prominent professional services firms, PwC Australia, is set to undergo a massive restructuring that includes significant job cuts as part of a cost-cutting initiative known internally as Project Maple. The firm is looking to streamline operations and reduce ongoing costs by up to $100 million amidst a sluggish consulting market.

The planned job cuts, totaling up to 400 staff members, represent over 5% of PwC Australia’s workforce of 7200 employees. The restructuring aims to centralize back-office and support functions across the firm’s three divisions, with a focus on eliminating duplicated roles and reducing positions within the consulting arm.

Notably, this round of job cuts marks the largest in recent memory for PwC Australia, a firm that previously faced challenges, including a tax leaks scandal and the impact of the COVID-19 pandemic, leading to smaller rounds of layoffs. Deloitte, another prominent consulting firm, also underwent significant staff reductions, cutting 700 employees during the peak of the pandemic.

The consulting industry as a whole has been grappling with decreased demand from the private sector, attributed to a slowdown in M&A activity and companies scaling back external advisory services expenditures. Expectations for an uptick in the market have been pushed back to at least August, with the public sector also experiencing reduced demand for advisory services.

Following the sale of its government advisory arm to Allegro Funds for a symbolic $1, PwC Australia is no longer actively involved in providing services to the public sector. This move was prompted by the fallout from the tax leaks scandal, which led to a push from the federal government to limit consultant usage.

Under the leadership of CEO Kevin Burrowes, who was appointed to address governance concerns and drive cultural reforms within the organization, PwC Australia is working towards realigning its business operations and rebuilding its reputation post-scandal. Burrowes’ reform program, initiated last year, is aimed at streamlining the firm for sustained long-term success.

As part of the wider restructuring efforts, the firm is aiming to slash $100 million in ongoing operational costs, indicating that further cost-cutting measures may be implemented in the future. These measures, including the recent job cuts, are expected to impact partner profits for the current financial year.

Despite facing challenges in the market and internal operations, PwC Australia remains focused on implementing strategic changes to enhance efficiency and restore trust in the firm’s operations for the long term.