PricewaterhouseCoopers is laying off approximately 1,500 employees in the US, marking a significant retrenchment by one of the Big Four accounting firms as it struggles with low staff turnover and stagnant market conditions.
The cuts, which amount to roughly 3% of PwC’s 75,000-strong US workforce, are primarily concentrated in the firm’s audit and tax divisions.
The decision followed a months-long internal review of business needs, according to Financial Times.
It also comes after the firm had already reassigned hundreds of employees to internal roles in higher-growth areas in an attempt to delay more drastic action.
“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 firm said in a statement.
Employees affected by the layoffs were informed on Monday and Tuesday, with hundreds being invited to a Microsoft Teams meeting before receiving severance details via email.
The suddenness of the decision has left many blindsided.
“From what I’d informally seen, we had very recently hired,” one PwC employee who was not laid off told Financial Times. “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,’” another employee said.
Internally, some employees accused the firm of poor transparency, noting that hiring had been curtailed well before turnover fell, yet salaries were still budgeted for junior employees who were ultimately deemed unnecessary.
The layoffs come amid mounting pressure across the Big Four as firms contend with reduced attrition rates and a tougher economic environment.
The Big Four accounting firms — Deloitte, PwC, EY and KPMG — are the largest global networks providing audit, tax and consulting services, serving most Fortune 500 companies.
Staffers who might previously have left voluntarily due to burnout or disillusionment are now staying put, exacerbating the challenge of managing headcount and payroll expenses.
That has led firms to make more aggressive cuts.
Compared to past moves from competitors, PwC’s cuts are less severe, but still reflect an industry trend.
In September, KPMG cut 5% of its US workforce, citing economic weakness and overcapacity.
Deloitte and EY also made reductions earlier in the year.
Deloitte, for example, told staff last month that no additional layoffs were planned for 2025, despite ongoing evaluations of staffing levels.
“Overall demand for Deloitte’s services remains strong,” the firm said following the internal call.
“We will continue to review staffing levels in alignment with evolving demand.”
KPMG, which has also been impacted by the unusually low attrition rates, told its US and UK staff that it is “addressing continued low levels of attrition.”
Analysts say the layoffs underscore a broader challenge facing professional services firms, many of which are still adjusting to the post-pandemic work landscape and less predictable revenue streams.
While hybrid work has become the norm, market volatility and fewer resignations have disrupted traditional workforce planning models.
With rising concerns over efficiency and profitability, PwC’s job cuts are likely not the last among the Big Four as firms attempt to recalibrate in a slow-moving business climate.
