PwC cuts 2% of US staff, says attrition rate 'at historic low'
PwC laid off about 1,500 US employees this week, representing 2% of its total US workforce, affecting audit and tax lines. The company attributed the move to an attrition rate at a 'historic low' for several consecutive years and emphasized it is unrelated to AI. Previously, PwC had cut 1,800 positions in September, mainly impacting consulting, product, and technology teams.
Quick Overview
- PricewaterhouseCoopers cut about 1,500 employees this week, citing low attrition rates and the need to better align with client demand.
- "This was a difficult decision, made with careful and thoughtful consideration, and with deep awareness of the impact on our people. We recognize that attrition rates at historic lows for several years made this step necessary," a spokesperson for the Big Four firm said in a statement to CFO Dive.
- The layoffs affect professionals in PwC's assurance and tax lines, including accountants. The spokesperson said the cuts are not related to AI adoption or AI investment.
Deep Dive
The layoffs come as the accounting industry faces a shortage of finance and accounting talent. In recent months, at least 11 states have passed legislation aimed at removing the 150-credit-hour college requirement for CPA licensure to attract a new generation of talent to the profession, CFO Dive previously reported.
The PwC spokesperson — whose firm expressed support last year for an alternative 120-credit-hour CPA licensure path — reiterated the company's commitment on Wednesday to strengthening the pipeline of CPAs.
"The industry has long needed more CPAs, and our commitment to growing that pipeline has never wavered. This is a moment of workforce recalibration, not retreat," the company spokesperson said.
The layoffs were first reported by the Financial Times, which cited sources saying the cuts came after "months of review of the business." PwC has 75,000 employees in the U.S. Previously, the firm cut 1,800 employees in September, primarily in its U.S. consulting, product, and technology operations teams, according to The Wall Street Journal.
Despite the company's claim that AI is not a driver of the layoffs, speculation persists. In 2023, the firm announced it would invest $1 billion in generative AI over three years. Its AI initiatives include ChatPwC, an internal generative AI tool, and AI agents that can guide software development and advise auditors.
Under pressure from private-equity-backed competitors and the rise of AI, PwC, like the other Big Four firms, is streamlining operations, James O'Dowd, managing partner at executive search firm Patrick Morgan, told Bloomberg Tax.
Despite industry concerns about a shortage of finance and accounting talent, PwC is the latest Big Four firm to announce layoffs in recent months.
In early April, multiple media outlets reported that Deloitte was cutting a "small percentage" of employees in its government and public services practice following the Trump administration's spending cuts. Since January, 127 contracts have been reduced or modified.
In November, KPMG cut 4% of its roughly 9,000-person U.S. audit team, following multiple rounds of U.S. layoffs, The Wall Street Journal reported.
Meanwhile, EY is cutting jobs this year across its global consulting, legal, and regional management teams as part of a restructuring effort under CEO Janet Truncale.