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PWC has fired about 1,500 employees in the US, becoming the latest big four company to cut back after historically low staff turnover.
According to those familiar with the issue, layoffs reached 2% of PWC US’s 75,000 workforce, focusing primarily on the audit and tax business.
According to those familiar with the decision, the job cuts were the result of the process of investigating the business, coming after the PWC previously moved hundreds of US staff from unnecessary posts to high-growth units.
“This is a difficult decision, and we made it with caution, thoughtfulness and deep awareness of the impact on our people. We realized that a historically low level of attrition needs to take this step,” a spokesman for the PWC said.
The affected staff were said to have been said this Monday and Tuesday, people said. Hundreds have been warned by Microsoft Teams Meeting invitations sent to emails marked “time sensitive.”
Those laid off included many who had recently participated in the PWC. One person, which began in September, told the Financial Times that it was “devastated.” “Everyone was completely blinded by layoffs today,” the person said. Another affected person said:
The company has also decided to cut campus employment due to low staff turnover, but it supports an offer it has already been made to last year’s interns, which is scheduled to take part later this year, the person said.
The new round of layoffs was second-ordered by senior US partner Paul Griggs since taking the helm a year ago. In September he restructured the PWC product and technology group, losing about 1,800 jobs. Some of the additional layoffs that took place on Monday included more staff in that department.
Low staff revenues exacerbate the financial pressures of the big four companies, employing tens of thousands of new graduates each year. Their business advice has been slowed sharply as they derailed by stock market turmoil as they hope for a post-pandemic boom in technology consulting work and an increase in merger and acquisition jobs this year.
A month ago, Deloitte executives told staff via internal phone that the group would be firing staff across advisory projects, including government contract units affected by Elon Musk’s so-called government efficiency office cost-cutting drive.
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“Overall demand for Deloitte’s services remains strong,” a company spokesman said at the time. “We take modest HR action based on mitigating growth in certain areas, evolving needs of government clients, and low levels of voluntary attrition.”
KPMG cut US staff in November, the Wall Street Journal reported a total of 330 people, or about 4% of the auditing department’s workforce. The company said it is “dealing with a continuous low level of attrition.”
