PwC, one of the Big Four accounting firms, is laying off around 1,500 employees in the US, citing historically low staff turnover as the primary reason. The job cuts represent about 2% of PwC’s 75,000-strong US workforce, with most reductions occurring in its audit and tax divisions.
Why is PwC Laying Off Employees?
The decision follows a months-long review of business needs. PwC had previously reassigned hundreds of employees from slower-growing areas to high-demand roles, but low attrition rates forced further cuts.
“This was a difficult decision, but necessary due to consecutive years of low attrition,”*PwC stated.
How Are Employees Affected?
- Layoff notifications began this week via email and Microsoft Teams invites marked *“time-sensitive.”*
- Some affected employees were recent hires, including those who joined as recently as September.
- Promotions were canceled for some, leaving employees shocked.
Big Four Firms Facing Similar Challenges
PwC isn’t alone—other Big Four firms are also trimming jobs:
- Deloitt recently cut advisory roles, partly due to reduced government contracts.
- KPMG laid off 330 audit staff (4% of its division) in November.
Hiring Slowdown & Industry Trends
With fewer employees leaving voluntarily, PwC is scaling back campus recruitment but will honor offers made to 2023 interns.
Financial Pressures in Consulting
Post-pandemic consulting demand has slowed, and expected growth in mergers and acquisitions (M&A) has been hurt by market instability.
Key Takeaways
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PwC job cuts: 1,500 in the US (2% of workforce).
Reason: Low attrition, shifting business needs.
Industry trend: Big Four firms adjusting to reduced turnover and economic shifts.
This restructuring reflects broader challenges in professional services as firms adapt to changing market conditions.