Scyne Shrinks Workforce Amid Ongoing Financial Troubles

Scyne Advisory is cutting jobs again as it continues to burn through cash and struggle to secure new contracts. The move underscores how the firm’s split from PwC has not produced the growth it once promised. The company has reduced its workforce by another 5%, including several senior leaders, even after raising $50 million in new capital to stay afloat.

When PwC separated from its public sector consulting division in mid-2023, private equity firm Allegro acquired it with plans to gain a foothold in the profitable government market. The rebranded firm, Scyne, launched with 1,200 employees. That number has since dropped to 950. Recent filings reveal that the firm issued tens of millions in equity just to continue operating, as securing contracts has proven difficult.

Allegro initially agreed to pay $16 million for the business, but ended up paying only $14.3 million after certain performance conditions were not met. In addition to the purchase price, Allegro invested approximately $92 million in funding. Despite this support, Scyne reported a pre-tax loss of $81 million in its most recent financial year. In a further effort to recapitalise and pursue targeted growth, $50 million in new shares were issued.

Scyne continues to face the challenge of being closely associated with PwC, and not in a positive light. After the public backlash from PwC’s tax leak scandal, trust within government agencies began to erode. Strong competition from firms such as Nous and KordaMentha has made it harder to win contracts. Even though Scyne has secured smaller deals worth a few million dollars from Defence and Home Affairs, it still lags behind its competitors.

Meanwhile, the consulting landscape is evolving. Government spending on consulting remains close to record highs, totaling $660 million in the past year. Major firms like EY, Deloitte and KPMG continue to dominate the market. However, smaller firms with solid reputations in the public sector, such as Nous, are increasing their market share as clients look to distance themselves from brands linked to past controversies. Despite the challenges, Scyne finished second in securing health-related government contracts this year, offering a small but notable achievement in a difficult environment.

Source: The Australian, Consultancy Australia

Doga Sydney - Corporate Cuddles & Puppy Yoga

Take what you’re doing offline and circle back on team wellness because real team bonding happens with puppies, not PowerPoint. Give your team an event they’ll actually look forward to with Puppy Yoga!

We’ve got you covered with Corporate Cuddles and Puppy Yoga 🐶