PricewaterhouseCoopers is shedding roughly 1,500 staff within the US, marking a big retrenchment by one of many Massive 4 accounting companies because it struggles with low employees turnover and stagnant market situations.
The cuts, which quantity to roughly 3% of PwC’s 75,000-strong US workforce, are primarily concentrated within the agency’s audit and tax divisions.
The choice adopted a months-long inner evaluation of enterprise wants, in keeping with Monetary Occasions.
It additionally comes after the agency had already reassigned a whole lot of staff to inner roles in higher-growth areas in an try to delay extra drastic motion.
“This was a difficult decision, and we made it with care, thoughtfulness and a deep awareness of its impact on our people, appreciating that historically low levels of attrition over consecutive years have made it necessary to take this step,” the agency mentioned in an announcement.
Workers affected by the layoffs had been knowledgeable on Monday and Tuesday, with a whole lot being invited to a Microsoft Groups assembly earlier than receiving severance particulars by way of e-mail.
The suddenness of the choice has left many blindsided.
“From what I’d informally seen, we had very recently hired,” one PwC worker who was not laid off advised Monetary Occasions. “Previous years, somebody blindsided like this got loads of help.”
“The firm seems to be trying to get rid of people, but instead of perception aid just saying ‘we are going to cut,’” one other worker mentioned.
Internally, some staff accused the agency of poor transparency, noting that hiring had been curtailed effectively earlier than turnover fell, but salaries had been nonetheless budgeted for junior staff who had been in the end deemed pointless.
The layoffs come amid mounting stress throughout the Massive 4 as companies deal with lowered attrition charges and a more durable financial atmosphere.
The Massive 4 accounting companies — Deloitte, PwC, EY and KPMG — are the biggest world networks offering audit, tax and consulting providers, serving most Fortune 500 corporations.
Staffers who would possibly beforehand have left voluntarily as a result of burnout or disillusionment at the moment are staying put, exacerbating the problem of managing headcount and payroll bills.
That has led companies to make extra aggressive cuts.
In comparison with previous strikes from opponents, PwC’s cuts are much less extreme, however nonetheless replicate an trade pattern.
In September, KPMG reduce 5% of its US workforce, citing financial weak point and overcapacity.
Deloitte and EY additionally made reductions earlier within the yr.
Deloitte, for instance, advised employees final month that no extra layoffs had been deliberate for 2025, regardless of ongoing evaluations of staffing ranges.
“Overall demand for Deloitte’s services remains strong,” the agency mentioned following the interior name.
“We will continue to review staffing levels in alignment with evolving demand.”
KPMG, which has additionally been impacted by the unusually low attrition charges, advised its US and UK employees that it’s “addressing continued low levels of attrition.”
Analysts say the layoffs underscore a broader problem dealing with skilled providers companies, lots of that are nonetheless adjusting to the post-pandemic work panorama and fewer predictable income streams.
Whereas hybrid work has turn into the norm, market volatility and fewer resignations have disrupted conventional workforce planning fashions.
With rising issues over effectivity and profitability, PwC’s job cuts are possible not the final among the many Massive 4 as companies try to recalibrate in a slow-moving enterprise local weather.
