PWC partners agree to £44,000 pay cut as accounting giant struggles to cut costs

PWC partners have agreed to a £44,000 pay cut as the accountancy giant battles to cut costs.

The average salary of its chief accountants has fallen from £906,000 to £862,000, while profits fell 14 per cent to £1.1bn in the 12 months to the end of June.

PwC said it was facing “challenging market conditions” as deal making slowed amid economic uncertainty. This has also caused demand for accountants and consultants to cool.

The Big Four accounting firms (PwC, KPMG, Deloitte and EY) have cut costs in the face of this crisis.

This is in stark contrast to the boom in business transactions that followed the pandemic. In 2022, PwC partners received a record £1m.

PwC UK has refreshed its leadership, appointing Marco Amitrano as managing partner and head of clients and markets senior partner for its UK and Middle East business, replacing Kevin Ellis.

Amitrano said: “Even in a tough market, we have continued to invest, while managing costs and adapting our way of working to respond to new opportunities. Our continued growth and stability puts us in a strong position.”

Despite the slowdown, revenue rose 9 percent to £6.3 billion.

The group has cut more than 500 staff and told its 26,000 UK employees they must spend at least three days a week in the office or with clients from January.

Attendance will be monitored in a context of “emphasis on face-to-face working”. It has invested more than £100m in technology and “other strategic priorities”.