PwC Plans to Cut1,800 Jobs Citing Changing Market Demand

Accounting giant PricewaterhouseCoopers (PwC) is reportedly cutting around 1,800 jobs.

The layoffs, its first in 15 years, will be accompanied by a restructuring of PwC’s technology group amid slowing demand for its advisory services, the Wall Street Journal reported Wednesday (Sept. 11), citing sources familiar with the matter.

Those sources say PwC — one of the “Big Four” accounting operations — is in the process of cutting staff in the U.S. and elsewhere, chiefly in its U.S. advisory and products and technology operations. The cuts, about half of which are offshore, include associates as well as managing directors. It also includes business services, audit and tax divisions, the sources said.

PwC intends to notify those affected, roughly 2.5% of the workforce at the U.S. unit, in October, the sources added. A staff memo obtained by the WSJ outlined the layoff/restructuring plans.

“There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy,” Paul Griggs, PwC’s U.S. leader, said in the memo, adding that the company hopes to restructure its products and technology teams to embed them in individual business lines and streamline processes in business services.

When reached for comment by PYMNTS, PwC U.S. Chief Operating Officer Tim Grady said the move was necessary.

“To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most,” Grady said in an emailed statement. “Right now, we are focused on running our business well and adapting to meet the needs of our clients and the rapidly changing market.”

The WSJ noted that PwC has positioned itself as an outlier among the Big Four over the past two years by not cutting its U.S. workforce. The other three firms – EY, KPMG and Deloitte – let go of thousands of U.S. workers during that period.

The layoffs come as PwC is facing other pressures. For example, the U.S. Public Company Accounting Oversight Board (PCAOB) earlier this week issued new quality control standards for accounting firms.

Those standards were approved by the U.S. Securities and Exchange Commission (SEC) in a 3-2 vote, in the face of objections from the likes of the U.S. Chamber of Commerce and firms including EY and PwC.

The standards require accounting firms that audit more than 100 public companies to set up an oversight board that includes at least one independent outsider to help oversee audit quality.

“An auditing firm is ultimately a professional services firm, and it needs to ensure the quality of the services it provides,” said SEC Chair Gary Gensler. “I am pleased to approve this standard because it will improve the quality control systems of auditors, and thus better protect investors.”