PwC Layoffs: The consultancy giant PwC's US division plans to lay off approximately 1,800 employees, marking its first formal job cuts since 2009. Firm's this decision is part of a restructuring effort within its technology group and comes in response to a slowdown in demand for certain advisory services, according to a report from the Wall Street Journal.
Half of the expected layoffs will affect offshore positions, impacting employees at all levels, from associates to managing directors. The report suggests that departments such as business services, audit, and tax will experience substantial cuts. Approximately 2.5 per cent of the US workforce will be affected, with layoff notifications scheduled for October.
According to the report, Paul Griggs, PwC's US leader, acknowledged in a memo to staff that the layoffs would affect "a relatively small proportion of our people, something that is never easy.” PwC noted that the last formal layoffs in its US division took place in 2009.
Meanwhile, PwC is facing significant challenges in China following the loss of Country Garden Holdings as a client. This development comes amid scrutiny over PwC’s auditing of China Evergrande Group, which is involved in a $78 billion fraud scandal. Consequently, PwC China has implemented cost-cutting measures and layoffs.
On September 5, news agency Reuters reported that over 50 Chinese firms, including PwC's largest mainland client, Bank of China, have either dropped PwC as their auditor or cancelled plans to rehire the firm. Country Garden's decision was attributed to PwC's failure to meet the deadline for publishing its audited 2023 financial statements.
PwC’s latest move comes as its rivals, namely EY, KPMG, and Deloitte, have collectively laid off thousands of US employees over the past two years. Similar to the IT sector, these layoffs are partially a response to the overexpansion during the pandemic.
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