PwC Australia Announces Job Cuts: Pricewaterhouse Coopers (PwC) Australia has announced a significant round of job cuts, affecting 338 staff, citing a slowing economy and the fallout from a national scandal related to leaked tax documents. This year, the firm faced scrutiny after a former partner leaked government tax plans, subsequently using this information to secure work with global companies seeking to restructure their Australian tax affairs. As a result of this controversy and the firm’s smaller size following the spin-off of its government consulting practice, PwC Australia will make these redundancies, accounting for about 4% of its remaining workforce.
The scandal, which came to light in January, led to the departure of PwC Australia’s CEO and several senior partners, and caused public and private-sector clients to sever ties. Prominent clients, including Google, Uber Technologies, and Meta Platforms, were drawn into the controversy.
Shortly before this announcement, Westpac Group, Australia’s fourth-largest bank, ended its long-standing relationship with PwC as its external auditor. The bank did not explicitly reference the tax leak issue but stated that it was part of “best practice for audit firm rotation” to seek a new external auditor.
Also Read: Hyundai and Kias Warning for 90,000 Drivers to Stay Safe Parking Precaution
PwC had been Westpac’s auditor since 2002, and the bank had a relationship with PwC and its predecessor firms dating back to 1968.
Australia’s regulatory framework requires auditors to spend no more than five consecutive years out of seven on a company, though auditing firms can remain longer by rotating staff. PwC’s lead audit partner for Westpac assumed the role less than two years ago, in December 2021.
PwC expressed understanding of the board’s decision and highlighted its pride in serving as Westpac’s auditor. Westpac had paid PwC approximately A$34 million in audit and audit-related fees in the 2023 financial year, representing about 1% of PwC Australia’s revenue for that year, which stood at A$3.4 billion.
Our Reader’s Queries
Is PwC cutting more than 330 jobs in Australia after scandal over misuse of Treasury information?
Price Waterhouse Coopers, a leading consulting firm, is set to reduce its workforce in Australia by over 330 jobs, which accounts for four percent of its total staff. This move comes in the wake of the tax leaks scandal that has affected the company’s reputation. The fallout has led to a significant number of businesses and Government departments distancing themselves from PwC.
How many employees does PwC Australia have?
Discover the journey of PwC Australia and how we have grown into a team of over 8,000 professionals across the country. Our rich history is a testament to our commitment to excellence and dedication to serving our clients with the highest level of expertise. Join us as we continue to shape the future of business in Australia and beyond.
What does PwC stand for?
PwC, short for PricewaterhouseCoopers, is a global accounting and auditing company based in London, UK. The firm’s roots can be traced back to the 1800s when Price Waterhouse & Co. and Coopers Brothers were established as accountancy firms.
What is PwC skilled service hub?
In 2021, PwC Australia launched its Skilled Service Hub to cater to the expanding public sector business and meet the data sovereignty needs of its clients. The hub serves as a crucial support system for the firm’s operations, ensuring that clients’ requirements are met with utmost efficiency and professionalism. With a focus on delivering top-notch services, PwC Australia’s Skilled Service Hub is a testament to the firm’s commitment to excellence and innovation.