PwC axes 1,500 jobs in the US amid low attrition and slow growth
May 6, 2025
Staff blindsided as Big Four firm makes second round of cuts under US chief Paul Griggs
PwC has become the latest of the Big Four accounting firms to announce a significant workforce reduction in the US, confirming on Monday that approximately 1,500 roles—around 2% of its 75,000-strong American workforce—are being cut.
The redundancies are concentrated in the firm’s audit and tax units, according to people familiar with the matter.
The move underscores mounting pressure on professional services firms grappling with sluggish demand and unusually low staff turnover—a dynamic that has upended long-standing workforce planning models.
“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.
Many affected employees were informed this week via “time-sensitive” Microsoft Teams invitations, with some staff reportedly learning of their redundancy through these calendar alerts. According to individuals impacted, several of those laid off had joined the firm only months ago.
“Everyone was completely blindsided by the lay-offs today,” one employee who joined in September told the Financial Times, adding they were “devastated”.
Another said: “Some of us were up for promotion, but instead of a promotion and a pay bump we’re now getting cut off.”
PwC is also pulling back on campus recruitment, although the firm said it would honour offers already made to interns due to join later this year.
This is the second round of lay-offs ordered by Paul Griggs since assuming the role of US senior partner last year.
In September 2024, Griggs oversaw a restructuring of the firm’s products and technology division, resulting in the loss of around 1,800 jobs. Some of those affected by the latest cuts also came from that unit.
While attrition has historically served as a release valve in high-churn industries like professional services, the pandemic and subsequent market uncertainty have altered employee behaviour.
Retention has remained unusually high across the Big Four, prompting firms to re-examine cost structures.
For PwC, that re-evaluation has now culminated in redundancies. Insiders say the decision followed months of internal analysis, during which the firm had already redeployed hundreds of staff into higher-growth segments.
The job cuts also arrive against a backdrop of weakening demand for advisory services. After a pandemic-driven boom in technology consulting, expectations for a rebound in M&A activity this year have been frustrated by market volatility.
PwC’s move mirrors cuts made by peers. Deloitte recently announced staff reductions across its advisory business, including within its government contracting arm—reportedly impacted by fiscal tightening under the so-called Department of Government Efficiency.
“Overall demand for Deloitte’s services remains strong,” the firm said, though it acknowledged “modest personnel actions” were underway.
KPMG, too, trimmed its audit workforce by 330 roles in November 2024—roughly 4% of its US audit division—as it also cited “continued low levels of attrition”.
The broader context for these actions includes strategic realignment. PwC has already exited nine markets in Sub-Saharan Africa and last year was said to be considering deep cuts in its Chinese financial services audit practice amid regulatory scrutiny and client losses.
For now, the firm’s global ambitions remain intact, but the current wave of reductions suggests a recalibration of near-term expectations.
The message from PwC’s leadership is clear: headcount decisions—once buffered by natural churn—can no longer be deferred.
[Accountancy Age]
