PwC to lay off 1,500 employees, affecting freshers and THESE key departments

PwC has announced plans to lay off approximately 1,500 employees across its US operations, including fresh graduates, as it grapples with sustained low staff turnover and changing business demands. The move marks the second major wave of job cuts at the firm in less than a year, sending ripples across the professional services sector already facing mounting pressure.

The redundancies, which account for roughly 2% of PwC’s 75,000-strong US workforce, will primarily impact the firm’s audit and tax divisions. People familiar with the matter said affected employees began receiving notifications earlier this week, with many learning of their job status via urgent Microsoft Teams invites marked “time sensitive.”

In a statement, PwC acknowledged the difficulty of the decision, noting it was made after months of evaluating the business in light of historically low attrition. “This was a difficult decision, and we made it with care, thoughtfulness and a deep awareness of its impact on our people,” a spokesperson said. “Historically low levels of attrition over consecutive years have made it necessary to take this step.”

Sources also revealed that the cuts included individuals who had only recently joined the company, leaving many shocked and disheartened. One employee who joined PwC in September described the experience as “devastating,” telling the Financial Times that “everyone was completely blindsided by the lay-offs today.” Another added, “Some of us were up for promotion, but instead of a promotion and a pay bump we’re now getting cut off.”

This round of job cuts follows an earlier restructuring effort led by US senior partner Paul Griggs in September last year, which resulted in the elimination of around 1,800 roles in PwC’s products and technology division. Some of those now being laid off come from that same group, suggesting ongoing shifts in how the firm allocates resources across its business units.

Although the layoffs are concentrated in areas experiencing weaker demand, such as audit and tax, they also underscore a broader industry trend. The advisory arms of the Big Four—PwC, Deloitte, KPMG, and EY—have seen a marked slowdown following the post-pandemic consulting boom. A surge in technology-related work and anticipated growth in mergers and acquisitions have been stifled by recent stock market volatility and economic uncertainty.

Adding to the pressure, low voluntary turnover has left firms with more staff than they can profitably deploy. The Big Four are known for hiring large cohorts of new graduates each year, banking on natural attrition to maintain balance. But as attrition rates have remained unusually low, firms are being forced to confront the reality of overcapacity.

As part of its recalibration, PwC has reportedly curtailed its upcoming campus hiring. However, the company plans to honour offers extended to interns who completed placements last year and are scheduled to begin full-time later in 2025.

The shake-up at PwC is not isolated. Deloitte recently confirmed it would also be trimming staff from its advisory business, including teams working in government contracting. Executives cited shifting client needs, moderated growth in specific areas, and lower than expected staff turnover as key factors. Similarly, KPMG laid off around 330 employees from its US audit division in November, attributing the move to the same issue—persistently low attrition.

The pressure on Big Four firms has opened the door for smaller, boutique consultancies to gain ground. With more agile models and leaner operations, these firms are increasingly appealing to clients seeking specialised, cost-effective services. As traditional giants like PwC reevaluate their structures and workforce strategies, the professional services landscape may be poised for a period of significant transformation.

For now, those affected by the PwC redundancies are left to pick up the pieces. “It’s disheartening to think that even as the firm speaks of care and strategy, so many of us are left out in the cold—right at the start of our careers,” one laid-off fresher remarked.

The broader industry now watches closely to see whether further cost-cutting measures will follow across the sector, as firms attempt to strike a balance between long-term growth and short-term sustainability.