Mirror Review
May 6th, 2025
News broke Monday regarding significant PwC layoffs, as the Big Four accounting firm confirmed plans to reduce its US workforce by approximately 1,500 employees. This move represents about 2% of PwC’s 75,000-strong team in the United States.
The company stated that this decision, while difficult, was necessary due to historically low levels of staff leaving the firm voluntarily over recent years.
Key Details of PwC Layoffs:
- Number of Employees Affected: Around 1,500.
- Percentage of US Workforce: Approximately 2%.
- Reason Stated: Historically low attrition rates over consecutive years.
- Notification Process: Affected staff were informed earlier this week, with some alerted via “time sensitive” Microsoft Teams meeting invites.
- Previous Actions: This follows a restructuring in September under US senior partner Paul Griggs, which resulted in about 1,800 job losses in the products and technology group. PwC had also previously moved hundreds of staff from roles with less demand to areas experiencing higher growth.
A PwC spokesperson acknowledged the difficulty of the decision, saying, “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 impact on employees was immediate, with one person who joined in September telling the Financial Times they were “devastated” and that “Everyone was completely blindsided by the lay-offs today”.
Another affected individual noted the timing, stating: “Some of us were up for promotion, but instead of a promotion and a pay bump, we’re now getting cut off”.
Broader Context and Contributing Factors Of The PwC Layoffs
The recent US job cuts at PwC don’t appear to be happening in isolation. Several factors and recent activities mentioned in reports provide a wider context:
- Low Attrition Impact: The firm explicitly cited “historically low levels of attrition over consecutive years” as a key reason for the cuts. This suggests that lower-than-expected voluntary departures impacted staffing levels relative to business needs.
- Market Conditions: The advisory arms of Big Four firms have seen a slowdown following a post-pandemic boom, particularly in technology consulting. Furthermore, anticipated growth in mergers and acquisitions work has reportedly been hindered by stock market conditions.
- Global Restructuring: PwC has undertaken other significant strategic reviews recently. Last month, the firm shut operations in nine Sub-Saharan African countries. Last year, reports indicated potential major cuts in its financial services auditing staff in China due to regulatory issues and client departures.
- Hiring Adjustments: Alongside the layoffs, PwC decided to reduce campus hiring, although it plans to honor offers already made to interns.
- Industry Actions: Other Big Four firms have also adjusted staffing. KPMG reportedly laid off less than 4% of its US audit workforce (around 330 people) in November last year.
Conclusion
The recent announcement regarding PwC layoffs in the US reflects a confluence of factors, including sustained low employee turnover and evolving market demands for advisory services.
Viewed alongside the firm’s recent strategic actions globally and similar moves by competitors like KPMG, it highlights a period of recalibration within the sector. Furthermore, how the Big Four accounting firms and others in the industry continue to adapt to these dynamics remains a key point of observation.
