PwC Announces Major Job Cuts Amidst Slump in Demand and Staffing Issues
PwC US Prepared to Eliminate 1,500 Positions
It's time to bid adieu to around 1,500 jobs at PwC, a Big Four accounting firm, as they embark on a significant downsizing in the US. This decision, made after an extensive business review, is set to affect 2% of their US workforce, primarily targeting positions within the audit and tax business sectors.
A virtual meeting last week confirmed the unfortunate layoffs for the employees concerned. The company, in a statement, acknowledged the difficulty of this decision, saying, "We approached this move with careful thought, deep awareness of its impact, and understanding that historical low levels of attrition have necessitated such action."
In the UK, PwC made some drastic changes earlier this year. The firm slashed its partnership ranks to record lows and halted its tech apprenticeship scheme to safeguard partner profits amidst the sharp downturn in the consultancy sector.
The accounting industry seems to be grappling with a profitability issue. Over the past couple of years, PwC, along with competitors such as EY, KPMG, and Deloitte, have trimmed thousands of roles due to the sector's slump.
Reportedly, 900 roles were axed at UK Big Four firms in 2024, following roughly 1,800 job cuts in 2023. Firms in the sector are grappling with reduced demand in core services like audit and tax, along with evolving client needs, which have led to the necessity of restructuring.
PwC UK reported single-digit revenue growth in September, but this was against a backdrop of the group's profit and partner pay plummeting yet again.
The rationale behind these job cuts can be attributed to historically low levels of attrition and sluggish demand, factors that have disrupted workforce planning models. Other Big Four firms like Deloitte and KPMG are making similar adjustments due to comparable market pressures. Critics have voiced concerns over the abrupt layoff processes, including PwC's use of "time-sensitive" Teams invites to inform the affected staff.
In light of these developments, it appears that these systemic pressures are not limited to the UK and the US, but likely extend globally, impacting markets with overlapping service demands and workforce dynamics.
The global finance and business landscape is undergoing significant changes, with PwC, a leading consultancy firm, planning to cut 1,500 jobs in the US, following a similar trend overseas. This move, influenced by historically low levels of attrition and slump in demand, is expected to affect various positions across audit and tax business sectors. On a global note, other Big Four firms like Deloitte, KPMG, and EY are implementing comparable adjustments, indicating a potentially widespread restructuring in the accounting sector.
