US | Big4
September 11, 2024
PwC US to Lay Off 1,800 Employees in First Major Cuts Since 2009
New leadership continues restructuring at the US Firm
| Picture: PwC Headquarters in NYC, 300 Madison Avenue, by giggel
PricewaterhouseCoopers (PwC) is set to lay off approximately 1,800 employees from its U.S. division, marking its first significant workforce reduction since 2009, WSJ reports.
SCALE AND SCOPE OF THE LAYOFFS
These layoffs, which represent about 2.5% of PwC’s U.S. staff, will affect various roles across business services, audit, and tax departments. The cuts are mainly targeted at the firm’s advisory and technology sectors, with nearly half of the positions being offshore.
The layoffs are part of a broader restructuring initiative as the firm contends with reduced demand in some of its advisory services. PwC plans to notify the affected employees in October.
BREAKING WITH RECENT TRENDS
The current layoffs come after a period during which PwC had avoided formal reductions in the U.S., distinguishing itself from other Big Four firms like EY, KPMG, and Deloitte, which collectively reduced their U.S. workforces by thousands in recent years. PwC’s last major layoffs in the U.S. occurred in 2009. In contrast, a 2017 restructuring saw the firm offering new roles to employees, with departures occurring if they declined the new positions.
REORGANIZATION OF INTERNAL STRUCTURE
Additionally, PwC is restructuring its products and technology teams to better integrate them into individual business lines and streamline business services. This restructuring follows Griggs' appointment as U.S. leader in May and his subsequent overhaul of the firm’s structure. Notably, the firm reverted to having tax as a separate business line in July 2024, after having combined its tax-reporting and accounting services into a single unit called Trust Solutions in 2021.
ADAPTING TO MARKET CONDITIONS
As the professional services industry navigates weaker demand and economic conditions, PwC continues to assess its investment strategies and product development.
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