PwC to lay off 1,800 employees, 2.5% of its US workforce to be impacted: Report

PricewaterhouseCoopers (PwC) is set to lay off approximately 1,800 employees, marking its first major workforce reduction since 2009. According to The Wall Street Journal, the layoffs will affect about 2.5% of the firm’s U.S. workforce and 0.6% of its global employees.

The layoffs are targeting employees in advisory, products, and technology divisions. The cuts will impact a range of positions, from associates to managing directors, including roles in business services, audit, and tax.

PwC calls the layoffs part of restructuring effort

The layoffs are part of a broader restructuring effort aimed at positioning the firm for future growth. PwC’s U.S. leader, Paul Griggs, indicated in a memo that this move is intended to streamline the company's operations.

This move follows his appointment as U.S. leader in May and a structural overhaul that took effect in July. The firm will notify the affected employees in October.

The timing of the announcement, carries significance, as the firm had lost five colleagues in the 9/11 attacks. The last time PwC made such extensive layoffs in its U.S. operations was during the financial crisis in 2009.

PwC’s layoffs are happening against the backdrop of significant change within the company and broader economic pressures. Earlier this year, PwC became the largest customer of OpenAI's ChatGPT Enterprise, deploying the AI tool to over 100,000 employees in the U.S. and U.K. This move highlights the firm's commitment to integrating advanced technology into its operations.

Meanwhile, PwC has faced challenges globally. In July, the firm initiated layoffs in its China operations due to regulatory scrutiny and a loss of corporate clients. It was followed after its involvement in the $78 billion Evergrande fraud investigation. The U.S. economy, while showing signs of a slowdown in job growth, is still expected to maintain a "soft landing," according to Treasury Secretary Janet Yellen.

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