PwC Layoffs: Firm Initiates Mass Job Cuts In China Amid Client Exodus, Says Report

Before the recent layoffs, concerns over regulatory penalties and the departure of Chinese corporate clients had unsettled employees at PwC China, leading some to explore job opportunities elsewhere

PwC Layoffs: PwC is reportedly reducing its workforce throughout its operations in China due to a significant departure of corporate clients, which has adversely affected the accounting firm’s revenue outlook in the region, reported Bloomberg, citing sources.

At least 100 employees from various teams at PwC's offices in Beijing, Shanghai, and other locations in China are being laid off. One source in the report mentioned that over half of a particular team has been affected by the layoffs. The total number of job cuts across the firm was not immediately specified.

“In light of changes to the external environment, we are making some adjustments to better optimise our organisational structure to align with market demand," stated a spokesperson from PwC in response to inquiries from Bloomberg. The firm did not disclose the specific number of staff reductions.

“These adjustments are a difficult decision. We are actively communicating with our people and will ensure that the plan is in compliance with all relevant labour laws in China,” the spokesperson added.

Before the recent layoffs, concerns over regulatory penalties and the departure of Chinese corporate clients had unsettled employees at PwC China, leading some to explore job opportunities elsewhere, according to the reports. Partners at other leading international and domestic accounting firms received numerous inquiries from PwC colleagues seeking alternative employment.

This year, over 30 publicly listed companies from mainland China, including state-owned giants like PetroChina Co., China Life Insurance Co., and Bank of China Ltd., have replaced PwC as their auditor. The majority of these changes occurred following scrutiny of the firm's involvement in an alleged accounting fraud at property developer China Evergrande Group, as per the report.

Regulators are investigating PwC's accounting services for Evergrande following allegations that the developer inflated its revenue by $78 billion from 2019 to 2020. The China Securities Regulatory Commission has pledged additional investigations into "intermediary agencies" implicated in the matter.