- PwC is laying off roughly 2% of its US workforce.
- The workforce reductions are the result of historically low attrition rates.
- The Big Four firm is also slowing future hiring and internship offers, but will honor current offers.
The Big Four firm PwC is laying off roughly 1,500 employees from its US workforce of 75,000, attributing the 2% workforce reduction to historically low rates of people leaving the firm by choice.
The layoffs began on Monday and predominantly target the firm's audit and tax lines, a person familiar with the matter told Business Insider.
All affected staff will be informed by the end of Tuesday via an individual meeting with their talent consultant and a partner on their team, the person said.
"This was a difficult decision, and we made it with care, thoughtfulness, and a deep awareness of its impact on our people, appreciating that historically low levels of attrition over consecutive years have made it necessary to take this step," a PwC spokesperson said.
In an email sent to staff on Monday, Deanna Byrne, PwC's US assurance leader, called the layoffs an "incredibly tough" moment.
"This decision follows a long period of close review — along with actively supporting internal mobility and moving talent to support growth areas. But with historically low attrition and continued market shifts, this is a necessary step to better align our firm for the future," Byrne told assurance staff in the internal email, which BI has reviewed.
An employee in the firm's assurance division described the layoffs as "unnerving." They said jobs in audit and tax had a reputation for being more stable compared to consulting divisions at the Big Four.
"I wouldn't say this aligns with my expectation of a leading professional services firm," the employee told BI. They requested anonymity as they were not permitted to speak to the press.
The employee added that they were not surprised there were layoffs, given that in a recent meeting with their regional sector leader on April 2, there was "discussion of increased pressure on the firm's bottom line as opposed to last year."
A person familiar with the matter told BI that the layoffs also impact some workers from PwC's products and technology (P&T) division as part of a longer-term unravelling of that department.
The person said some division employees have been transferred to other lines of service, and the remaining employees have been let go.
PwC US is also slowing future hiring and internship offers, and the Big Four firm plans to be more selective about appointments in the future, the person added, saying that all existing offers are being honored.
In its latest financial year, annual growth at PwC's Americas division slowed from 10.7% in 2023 to 3.4% in 2024.
Fellow Big Four firms EY and Deloitte have also carried out layoffs and slowed partner appointments in the past year amid a wider consulting industry slowdown.
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