- PricewaterhouseCoopers to lay off approximately 1,800 employees
- The affected group will be notified in October
- This is the first formal round of layoffs at the company since 2009
One of the Big Four accounting firms is laying off about 1,800 office workers and restructuring its competing technology practice, the first formal layoff since 2009.
PricewaterhouseCoopers is laying off dozens of employees at its U.S. arm, primarily in its U.S. consulting, product and technology businesses. the Wall Street Journal reported.
Of the 1,800 people being laid off, ranging from associates to managing directors, about half are offshore. The affected employees, who make up about 2.5% of the company’s U.S. operations, will all be notified in October, the business newspaper reported.
Paul Griggs, PwC’s U.S. leader, said in a memo to U.S. staff: “There will be an element of resource action that will only affect a relatively small portion of our people, which is never easy.
‘Ultimately, we are positioning our company for the future, creating investment capacity and anticipating and responding to today’s and tomorrow’s market opportunities.’
He added that he would be remiss if he did not acknowledge that the announcement was shared on the anniversary of the September 11 attacks, which killed five PwC employees.
PricewaterhouseCoopers lays off dozens of employees at its US branch (File photo)
PwC is the only Big Four firm that has not laid off anyone in the US in the past two years (file)
PwC has not formally laid off anyone since 2009, although it did offer new roles to employees during a restructuring in 2017. If employees refused the new roles, they had to leave.
It is the only Big Four firm that has not laid off anyone in the U.S. in the past two years. The others, EY, KPMG and Deloitte, have all laid off thousands of U.S. white-collar workers in that time.
Tim Grady, PwC’s U.S. chief operating officer, said in a statement to The Wall Street Journal: “To remain competitive and position our firm for the future, we continue to transform parts of our business and align our workforce with our strategy. This includes attracting and moving the right talent and skills to the areas where we need them most.”
As part of a global drive for greater efficiency, the company’s UK arm will soon track the location of its employees and require them to be at their desks for at least three days a week to limit office attendance.
The company told its 26,000 UK employees it would start tracking their work locations from January.
Managing partner Laura Hinton told staff last week that they would be sending their employees their work location data on a monthly basis. They were now required to spend “a minimum of three days a week” in the office or with clients.
She acknowledged that everyone at the company “benefits” from a hybrid work policy, but that previous guidance was “open to interpretation.”
In addition to limiting office hours, PwC also warned its staff in July that they could expect lower bonuses and pay rises this year.
Staff are also prohibited from taking half a day off on Fridays, which was an advantage due to the pandemic.
Ms. Hinton argued in her memo that relationships are “easier to build and maintain when you meet in person.”
She added that it creates a better customer experience and a better learning environment for staff.