PwC Cuts 1,500 Jobs, Scales Back Campus Recruitment Across US

PwC is the latest accounting firm to announce a big layoff figure. While geopolitical uncertainties have forced many firms to implement job cuts, the accounting company attributed its recent workforce reduction to 'historically low attrition' rates.

According to a report by the Financial Times, PwC has laid off around 1,500 employees, which accounts for roughly 2% of its total workforce figure. Most of the affected roles are in the audit and tax divisions across the US region.

"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," PwC said in a statement.

“Some of us were up for promotion, but instead of a promotion and a pay bump we’re now getting cut off," one of the affected employees reportedly said.

Meanwhile, other 'Big Four' companies have followed suit with similar actions. “We are taking modest personnel actions based on moderating growth in certain areas, our government clients’ evolving needs, and low levels of voluntary attrition," Deloitte spokesperson Jonathan Gandal said in a statement last month.

Campus Hiring Takes a Hit

Besides the layoffs, PwC is also planning to reduce its campus hiring. However, the accounting firm has clarified that it will honour previous year's job offers made to interns, who are set to join later this year.

While several companies have implemented layoffs in recent months, the majority cited geopolitical turbulence as the main reason. Undoubtedly, the recent trade tensions have escalated concerns over prevailing uncertainties in the macro sphere, threatening the bottom lines of many firms.

However, some reports also blame the recent layoffs on 'tech-enabled productivity.' With the advent of AI, many companies have been switching to automated systems and digital tools. According to a job survey by the World Economic Forum, 40% of employers globally anticipate a workforce reduction in segments where AI can handle repetitive tasks.