PricewaterhouseCoopers’ Shocking Move: 1,800 Jobs Cut in First Layoff Since 2009 – What’s Next for the Industry

September 13, 2024 Catherine Williams News
News Context
At a glance
  • The Wall Street Journal reports that PricewaterhouseCoopers, one of the four major international accounting firms, will be laying off approximately 1,800 employees in its US branch.
  • The layoffs, which account for about 2.5% of the US department's employees, will affect various business areas, including consulting, product, and technology departments.
  • The decision to downsize is attributed to slowing demand for some of the company's consulting businesses.
Original source: jump.mingpao.com

PricewaterhouseCoopers to Lay Off 1,800 US Employees Amid Restructuring

The Wall Street Journal reports that PricewaterhouseCoopers, one of the four major international accounting firms, will be laying off approximately 1,800 employees in its US branch.

Impact on US Operations

The layoffs, which account for about 2.5% of the US department’s employees, will affect various business areas, including consulting, product, and technology departments. Roughly half of the affected employees are overseas, ranging from assistants to managing directors. The layoffs also involve business services, audit, and tax departments.

The decision to downsize is attributed to slowing demand for some of the company’s consulting businesses. Affected employees will be notified in October. PricewaterhouseCoopers US Chief Operating Officer Tim Grady stated that the company is transforming its business areas and adjusting its workforce to maintain competitiveness and support future business strategies.

Industry Context

PricewaterhouseCoopers has been an outlier among the four major accounting firms, having not laid off employees in the US over the past two years. In contrast, Ernst & Young, KPMG, and Deloitte collectively laid off thousands of American employees during this period.

Global Restructuring Efforts

PricewaterhouseCoopers’ Chinese subsidiary has faced significant challenges, including involvement in Evergrande’s audit fraud scandal and potential punishment from Chinese authorities. Reports suggest that the company may reduce manpower in the Mainland and Hong Kong as part of its restructuring efforts.

Key Takeaways

  • PricewaterhouseCoopers to lay off 1,800 US employees, accounting for 2.5% of the US department’s workforce.
  • Layoffs affect consulting, product, and technology departments, as well as business services, audit, and tax departments.
  • Decision attributed to slowing demand for some consulting businesses.
  • PricewaterhouseCoopers aims to maintain competitiveness and support future business strategies through restructuring efforts.