PWC Layoffs: Departments
The layoffs are reportedly primarily concentrated in the advisory and technology sectors. A significant portion of the affected employees are based offshore. WSJ quoted PwC’s US leader, Paul Griggs, communicating these changes in a memo, “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 explained in the memo.
Changes after Paul Griggs took charge in May
In addition to the layoffs, PwC’s products and technology teams will be reportedly integrated into various business lines. As per the report, these adjustments are part of a larger restructuring effort initiated by Griggs, who took over as US leader in May. The firm is aiming to remain competitive amidst a slowdown in parts of its advisory services.
“To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy,” WSJ quoted PwC’s US Chief Operating Officer, Tim Grady, as saying.
PWC Facing Challenges in China
Meanwhile, PwC’s China office is facing challenges after losing a significant client, Country Garden Holdings. This comes amidst the ongoing scrutiny of PwC’s role in auditing China Evergrande Group, which is accused of a $78 billion fraud. PwC China has implemented cost-cutting measures, including layoffs, after over 50 Chinese firms, including Bank of China, severed ties with the firm, citing failures in meeting audit deadlines.
This restructuring represents a notable shift for PwC, which had avoided significant layoffs in the US since 2009, distinguishing it from competitors such as Ernst & Young (EY), KPMG, and Deloitte.