After separating from PwC following a damaging tax leak scandal, Scyne is struggling to rebuild its reputation and business. Now privately owned, the consulting firm is aiming to refocus on six core industries to support recovery, but it is contending with broader challenges disrupting Australia’s consulting sector.
Scyne, once part of PwC before being carved out and rebranded, had hoped the separation would create distance from the controversy that surrounded the misuse of confidential government information. However, even without formal ties to PwC, shifting sentiment in Canberra toward major consulting firms has led to a significant decline in contracts, and Scyne is bearing the impact.
Since launching in November 2023, the firm has recorded a total after-tax loss of $137 million and a net loss of $74.5 million for the 2024–25 financial year. Staff numbers have fallen by roughly a third since inception, and 16% have departed in the past three months. While the firm posted almost $209 million in revenue last year, nearly double the previous period, one-off costs such as redundancies and IT upgrades have kept it in the red.
Scyne’s difficulties reflect broader conditions in the consulting industry. Mid-sized competitors are gaining ground and government agencies are moving away from the big four. Broader workforce reductions at firms including KPMG, Deloitte, EY and Accenture suggest the sector is undergoing major restructuring. Some professionals are shifting to smaller, more specialised firms that are addressing emerging market needs.
Scyne’s leadership points to modest successes, citing a stronger deal pipeline and an underlying EBITDA of $3.1 million in the first quarter of this financial year. The company is now concentrating on six sectors, which are health, energy, utilities, social insurance, defence and transportation. With 100 roles currently open, the firm is positioning itself for renewed growth while managing a careful turnaround.
Backed by private equity, Scyne has secured over $100 million in funding from its owners to support operations. The core challenge is no longer about survival but about accelerating forward. With improved cash flow and a sharper strategy, the coming year will be crucial in determining whether Scyne can re-emerge as a leaner and more resilient force in a reshaped industry.
