PwC, one of the world’s four major accounting firms, recently announced plans to lay off approximately 1,500 employees in its U.S. operations, accounting for around 2% of the local workforce of 75,000 employees. The layoffs primarily target the auditing and tax departments.
According to a report by the Financial Times, the decision to downsize was driven by a decrease in employee turnover and historically low mobility rates, resulting in an excess of human resource allocation. Prior to making the layoff decisions, the company conducted internal evaluations for several months, attempting to reallocate some employees to other departments.
Notifications of the layoffs have been gradually issued since Monday, May 5th, with most employees receiving the news through Microsoft Teams meetings. Surprisingly, even employees who had just joined last year were included in the layoff scope.
PwC also announced a reduction in campus recruiting efforts while assuring the hiring arrangements for previously accepted interns will be fulfilled, with the expectation of delayed start dates later this year.
A company spokesperson stated, “This was a difficult decision, and we took into full consideration the impact on our employees when formulating the layoff plan.”
This marks the second wave of layoffs led by Paul Griggs, head of PwC’s U.S. operations since his appointment in May of last year. In September of the same year, the company restructured its products and technology department, resulting in the dismissal of approximately 1,800 employees.
Other major accounting firms are also facing similar personnel pressures and market challenges. Deloitte revealed plans to reduce staff in its consulting business division during an internal meeting last month, citing a reduction in government contract-related positions due to decreased government spending. KPMG also cut 330 auditing staff in November of last year, accounting for around 4% of the department’s total staff, also attributed to low employee turnover.
Following the pandemic, as companies increased their investments in consulting and technology, the business of the four major firms experienced rapid growth. However, with subsequent stock market volatility, slowdown in mergers and acquisitions activities, and reduced workforce mobility, there has been a noticeable decline in market demand, leading to increasing pressures on personnel costs.
PwC stated that they will continue to monitor market changes and adjust resource allocations flexibly to maintain service quality and support the company’s long-term development.
PricewaterhouseCoopers (PwC), headquartered in London, UK, is one of the world’s four major accounting firms with operations in 149 countries and regions, employing over 370,000 people. The company primarily offers auditing and assurance, tax, consulting services to help businesses enhance operational efficiency and strengthen compliance management.