PricewaterhouseCoopers, a leading figure among the Big Four accounting firms, is set to lay off approximately 1,800 of its white-collar employees.
This decision marks the first round of formal layoffs since 2009, predominantly affecting the firm’s American advisory, products, and technology sectors as reported by the Wall Street Journal.
Scope of Job Cuts
The layoffs at PricewaterhouseCoopers will impact a diverse range of positions, from associates to managing directors.
Roughly half of the affected employees are located offshore. This move will affect about 2.5% of the firm’s operations in the United States, with all affected individuals to be notified in October.
Communication from Leadership
In a memo addressed to the American staff, Paul Griggs, PwC’s US leader, stated, “There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy.”
This statement illustrates the firm’s difficult decision as it navigates current economic challenges.
Strategic Realignments Explained
Griggs further explained the layoffs as a strategic decision to prepare the firm for future challenges and opportunities.
“Ultimately, we are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow,” he elaborated in the memo to staff.
Layoffs Announced on Sensitive Date
The timing of the announcement coincided with the anniversary of the September 11 attacks, a day of significant loss for the firm which included the deaths of five PwC employees.
Griggs acknowledged the sensitivity of the date in his communication with the staff.
Historical Context of Layoffs
Prior to these layoffs, PricewaterhouseCoopers had not formally dismissed any employees since 2009.
Although in 2017, during a restructuring, employees were offered new roles and those who declined were asked to leave, according to the firm’s policies.
Comparison with Other Big Four Firms
Unlike its peers—EY, KPMG, and Deloitte, which have all conducted substantial layoffs of their American white-collar workforce in the past two years, PwC had managed to avoid such measures.
This avoidance continued until now.
Comments from the COO
“To remain competitive and position our business for the future, we are continuing to transform areas of our firm,” said Tim Grady, PwC’s U.S. chief operating officer, in a statement to The Wall Street Journal.
“We 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.”
Changes in the UK Office
The firm’s UK branch is also seeing changes.
New policies will track employees’ locations to ensure they spend at least three days a week at their desks or at client sites, starting from January.
UK Office Attendance Policy
The decision to track office attendance more rigorously aims to clarify the existing hybrid working policy, which was previously open to interpretation.
Laura Hinton, the managing partner, informed the 26,000 UK staff members that their location data would be monitored monthly.
Rethinking Employee Benefits in the UK
In addition to the tracking of employee locations, PwC’s UK staff have been advised to expect lower bonuses and restricted use of previous perks such as half-day Fridays.
This policy adjustment was made in July.
Building Relationships and Client Engagement
Laura Hinton highlighted the importance of face-to-face interaction in building stronger relationships and providing a superior client experience.
In her memo to the staff, she noted, “Relationships are more easily built and sustained face-to-face,” stressing the rationale behind the tightened office attendance policy.
