PricewaterhouseCoopers (PwC), one of the leading firms in the Big Four accounting group, is making significant cuts to its workforce in the United States, announcing plans to lay off approximately 1,500 employees. This decision, which represents around 2% of its 75,000-strong U.S. workforce, comes amid a backdrop of low attrition rates and sluggish demand for professional services.
The layoffs were confirmed on May 6, 2025, and primarily affect the firm’s audit and tax divisions. Employees were informed of their redundancy through Microsoft Teams meetings, with many reportedly blindsided by the news. "Everyone was completely blindsided by the layoffs today," one employee, who had joined the firm in September 2024, told the Financial Times, adding that they were "devastated" by the sudden decision.
In an internal message, Deanna Byrne, PwC's U.S. assurance leader, described the situation as an "incredibly tough" moment for the firm. She emphasized that the layoffs were the result of a thorough review process and a response to the historically low attrition rates seen over the past few years. "This was a difficult decision, and we made it with care, thoughtfulness, and a deep awareness of its impact on our people," Byrne stated, acknowledging the necessity of the cuts due to the firm’s changing market dynamics.
PwC's decision to reduce its workforce is not an isolated incident within the Big Four. Deloitte, KPMG, and Ernst & Young (EY) have also announced layoffs in recent months, reflecting a broader trend in the professional services industry. Deloitte, for instance, revealed it would be letting go of an unspecified number of employees, while KPMG trimmed its audit workforce by 330 roles in November 2024.
The layoffs at PwC follow a previous round of job cuts in September 2024, when the firm laid off around 1,800 employees, primarily from its products and technology division. This ongoing restructuring initiative, led by U.S. senior partner Paul Griggs, aims to align the firm’s resources with current market demands and operational needs.
Industry analysts suggest that the current wave of layoffs is largely driven by a decrease in demand for advisory services, especially following a pandemic-driven boom in technology consulting. Many firms have been forced to reevaluate their cost structures in light of these changes. PwC's Americas division, for example, saw its annual growth slow from 10.7% in 2023 to just 3.4% in 2024.
The layoffs also coincide with a strategic pullback from certain markets. PwC has recently exited nine markets in Sub-Saharan Africa and is reportedly considering cuts in its Chinese financial services audit practice due to regulatory scrutiny and client losses. These moves reflect a recalibration of the firm’s global ambitions amid shifting economic landscapes.
As PwC navigates these changes, it is also scaling back on campus recruitment efforts, although it has committed to honoring existing offers to interns who are set to join later this year. The firm’s leadership has made it clear that headcount decisions, once buffered by natural employee turnover, can no longer be postponed.
This latest development raises questions about the future of employment within the professional services sector, where historically low levels of voluntary attrition had previously allowed firms to maintain stable staffing levels. As the economic climate continues to evolve, industry leaders are left grappling with how to best position their firms for long-term success.
In summary, PwC's recent layoffs are a poignant reminder of the challenges facing the professional services industry as it adapts to a post-pandemic reality. With changing market demands and a focus on operational efficiency, firms are now compelled to make difficult decisions that directly impact their workforce.
