- PricewaterhouseCoopers to lay off around 1,800 workers
- 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 of its back-office workers and restructuring its competitive technology practice, in its first formal layoffs since 2009.
PricewaterhouseCoopers is laying off dozens of workers at its US subsidiary, mainly from its consulting, product and technology operations in the United States. The Wall Street Journal reported.
Of the 1,800 people to be laid off, ranging from associates to managing directors, about half are based overseas. The affected workers, who account for about 2.5% of the company’s U.S. operations, will be notified in October, the business daily reported.
Paul Griggs, PwC’s US director, said in a note to US staff: “There will be an element of resource action that will affect a relatively small proportion of our people, which is never easy.
“Ultimately, we are positioning our company for the future, building capacity to invest and anticipating and reacting to the market opportunities of today and tomorrow.”
He added that he would be remiss if he did not acknowledge that the ad was being shared on the anniversary of the 9/11 attacks, in which five PwC employees were killed.
PricewaterhouseCoopers lays off dozens of workers from its US subsidiary (file image)
PwC is the only Big Four firm that has not laid off anyone in the United States in the past two years (Archive image)
PwC has not formally laid off anyone since 2009, although it did offer employees new positions during restructuring in 2017. If employees refused the new positions, they were forced to leave.
It is the only one of the Big Four companies that has not laid off anyone in the United States in the past two years. The others, EY, KPMG and Deloitte, have laid off thousands of American white-collar workers in that period.
Tim Grady, PwC’s chief operating officer in the United States, said in a statement to The Wall Street Journal: “To remain competitive and position our business for the future, we continue to transform areas of our firm and are aligning our workforce to best support our strategy, including attracting and moving the right talent and skills to the areas where we need them most.”
As part of a global drive for efficiency, the company’s UK subsidiary will soon begin tracking the locations of its employees and insisting they be at their desks at least three days a week in a crackdown on office attendance.
The company has informed its 26,000 UK employees that it will begin tracking their work location from January.
Managing partner Laura Hinton told staff last week that they would begin sending employees their work location details every month, adding that they must now spend “a minimum of three days a week” in the office or at client sites.
He acknowledged that everyone in the company “benefits” from a hybrid work policy, but that previous guidelines were “open to interpretation.”
As well as cracking down on office hours, PwC also warned staff in July to expect lower bonuses and pay rises this year.
It has also restricted staff from taking half days on Fridays, which was a benefit of the pandemic.
In her note, Ms. Hinton argued that relationships “are more easily built and maintained face-to-face.”
He added that it provides a better customer experience and a learning environment for staff.