By Lewis Jackson
SYDNEY (Reuters) – Dozens of PwC Australia staff set to move across to spin-off consultancy Scyne Advisory will no longer have roles at the new firm and have been offered leave or told to look for new jobs internally, PwC Australia said on Thursday.
PwC Australia sold its government advisory business, responsible for a fifth of revenues, to private equity group Allegro Funds for a nominal A$1 in August after government agencies cut ties over a national scandal involving leaked tax plans.
Renamed Scyne Advisory, more than 1,500 partners and employees out of PwC Australia’s more than 9,000 staff were expected to move to the new firm, PwC said in September.
However, the “big four” firm said on Thursday that 78 of those staff no longer have roles at Scyne because a number of PwC partners opted not to transfer.
The 78 have been offered paid leave and encouraged to look at the internal jobs board, the firm said in a statement.
“PwC will do everything in its power to help support these individuals,” CEO Kevin Burrowes said in a statement.
“This is a challenging time for these people, and our value of care will continue to be at the centre of our approach as we work through this over the coming days.”
Scyne Advisory did not respond to a request for comment through a public relations representative.
The move comes Scyne Advisory gears up to reclaim advisory work that netted PwC Australia A$680 million ($427 million) last financial year.
The Department of Finance, which sets procurement rules, this month gave Scyne the all clear to resume work with government and said no staff involved in the tax leaks scandal had transferred to the firm.
“Commonwealth entities can now consider contracting with Scyne in the same way they consider other tenderers, including considering novation of existing PwC contracts to Scyne.”
($1 = 1.5929 Australian dollars)
(Reporting by Lewis Jackson; Editing by Lincoln Feast.)
