Accounting powerhouse implements second round of cuts primarily affecting audit and tax divisions while scaling back recruitment efforts
5 key areas affected by PwC’s latest job reductions
The accounting and consulting titan PwC has announced plans to eliminate approximately 1,500 positions from its US operations, primarily targeting roles within the audit and tax services departments. This reduction represents roughly 2% of the company’s 75,000-strong American workforce.
According to inside sources, the decision stems from an extended period of unusually low employee turnover within the organization. Typically, accounting firms experience regular staff departures that create natural openings, but PwC has seen this pattern disrupted.
The company initiated the layoff process in early May, with affected employees receiving unexpected invitations to urgent Microsoft Teams meetings. Many of those impacted had only recently joined the firm, suggesting the cuts targeted newer hires across multiple departments.
These layoffs follow a comprehensive business review conducted by the company’s leadership team, which identified areas for operational streamlining amid changing market dynamics.
Recent graduates face uncertain future as PwC pulls back campus recruiting
Beyond the immediate job cuts, PwC has reportedly scaled back its campus recruitment initiatives, signaling a more cautious approach to talent acquisition. However, the firm has committed to honoring employment offers extended to last year’s summer interns, providing some relief to those recent graduates.
This shift in hiring strategy marks a significant change for a company that has historically maintained aggressive campus recruiting programs at top universities nationwide. The reduced campus presence suggests PwC anticipates continued low turnover and limited growth opportunities in the near term.
For recent accounting and business graduates, this pullback creates additional challenges in an already competitive job market, with fewer positions available at one of the industry’s most prestigious employers.
Second round of layoffs follows September restructuring
This latest workforce reduction comes just months after a previous round of cuts led by US senior partner Paul Griggs. In September 2024, Griggs orchestrated a major reorganization of PwC’s products and technology group, resulting in approximately 1,800 job eliminations.
The current layoffs appear to deepen those cuts, with additional employees from the products and technology division included alongside the audit and tax services staff reductions. Combined, these two rounds of layoffs have removed approximately 3,300 positions from PwC’s US operations within an eight-month period.
This pattern of sequential reductions indicates ongoing challenges within PwC’s business model as it adapts to changing client demands and economic pressures.
Global contraction as PwC exits multiple international markets
The US workforce reductions align with broader international restructuring efforts by the accounting giant. In April 2025, PwC ceased operations in more than a dozen countries that leadership deemed too small, risky, or unprofitable to maintain.
Earlier the same month, the firm severed ties with ten member firms across Africa following strategic disagreements about future direction and governance. These moves reflect a comprehensive evaluation of PwC’s global footprint and a willingness to withdraw from markets that no longer align with corporate objectives.
Industry analysts suggest these international contractions, combined with domestic layoffs, point to a fundamental reassessment of PwC’s business priorities rather than merely temporary cost-cutting measures.
Industry-wide pressures affect all “Big Four” firms
PwC’s challenges mirror broader struggles across the accounting sector, particularly among the “Big Four” firms that dominate global professional services. Each major player faces financial constraints partially attributed to declining demand for advisory services following a post-pandemic surge.
Deloitte has implemented significant staff reductions, primarily targeting its advisory business divisions where client projects have diminished. Similarly, KPMG reduced its audit division workforce by approximately 4% in response to changing market conditions.
These patterns suggest structural shifts within the accounting industry rather than company-specific issues. Factors including increased automation, regulatory changes, and evolving client expectations have created new operational realities for firms accustomed to consistent growth.
How the layoffs affect current and prospective employees
For current PwC employees, the layoffs create immediate uncertainty about job security and future career progression within the firm. The focus on audit and tax services—traditionally considered core, stable divisions—has particularly alarmed staff who viewed these departments as relatively insulated from market fluctuations.
Many affected employees report receiving minimal advance notice before termination, with some learning of their job status through hastily arranged virtual meetings. This approach has generated criticism regarding the firm’s handling of the reduction process.
Prospective employees, particularly recent graduates and early-career professionals, now face a more challenging path to securing positions with the accounting giant. The reduced campus recruitment efforts signal fewer entry-level opportunities in the coming hiring cycles.
Financial outlook remains complex despite cost-cutting measures
While the workforce reductions aim to address immediate financial pressures, PwC’s longer-term outlook remains complex. The firm continues to face challenges including increased competition from specialized boutique firms, growing client price sensitivity, and evolving regulatory requirements.
Industry experts note that while cost-cutting measures provide short-term financial relief, they must be balanced against the need to maintain service quality and innovation capabilities. Excessive reductions risk undermining the firm’s ability to compete effectively as market conditions evolve.
The company has not publicly disclosed anticipated financial impacts from these workforce reductions, though analysts estimate potential annual savings in the hundreds of millions of dollars when combined with international market exits and reduced recruiting expenses.
Looking ahead: Transformation or contraction?
As PwC implements these significant changes, questions persist about whether these moves represent temporary adjustments or a fundamental transformation of its business model. The sequential nature of the reductions, combined with international market exits, suggests a deliberate strategic shift rather than merely reactive cost management.
Industry observers will closely monitor whether these changes position PwC for future growth or signal a period of sustained contraction for one of accounting’s most recognized names. The firm’s ability to maintain client relationships, service quality, and employee morale during this transition will prove crucial to its long-term prospects.
For the thousands of professionals affected by these cuts, the immediate focus remains on navigating an unexpectedly challenging job market while leveraging their PwC experience to secure new opportunities within or beyond the accounting sector.
