PwC lays off 1,500 employees and 60 partners, citing flat revenues

PricewaterhouseCoopers has cut around 1,500 staff and 60 partners in the Middle East, following a breakdown in relations with Saudi Arabia’s powerful sovereign wealth fund, the Financial Times reported.

The layoffs began earlier this year as the accountancy giant sought to stem losses from a downturn in consulting demand across the Gulf, worsened by a ban from Saudi Arabia’s Public Investment Fund (PIF). Bloomberg previously reported that the fund barred PwC from winning advisory mandates for a year from February, a sharp blow to one of the region’s most active professional services players.

The decision by the PIF, which has become the principal driver of Saudi Arabia’s economic diversification plans, has effectively locked PwC out of a critical market at a time when global firms are already grappling with a slowdown in deal activity. The loss of business from Riyadh has added to pressure on the firm’s Middle East operations, where fee income has stagnated after years of strong growth.

According to the Financial Times, the reductions included partners in both the UK and Middle East businesses. Some of those departures were tied to broader restructuring moves aimed at resizing the firm for leaner conditions, people familiar with the matter told the paper.

PwC is not alone in retrenching. Global consultancies have been cutting costs as mergers and acquisitions slow and clients curb discretionary spending. In 2022, PwC partners enjoyed average pay above £1 million, supported by a pandemic-era M&A boom fuelled by low interest rates. That trend has since reversed.

Bloomberg reported that average partner pay at PwC’s UK and Middle East unit stood at £865,000 in the year to June 30, up marginally from £862,000 the prior year. While still high by industry standards, the number underscores how earnings have plateaued.

Total revenue across the unit was broadly flat, rising to £6.35 billion in 2025 from £6.33 billion previously. Within that, UK revenues came in at £4.2 billion while the Middle East business generated £1.98 billion. The small uplift reflects both muted demand and the loss of lucrative mandates in Saudi Arabia.

Fallout with Riyadh

The rupture with the PIF has been particularly damaging. The Saudi fund, with more than $900 billion in assets, has been central to the kingdom’s “Vision 2030” programme, deploying billions into infrastructure, technology and entertainment projects. Advisory contracts tied to these initiatives have been among the most prized mandates for global firms operating in the Middle East.

By being sidelined, PwC faces both financial and reputational consequences. Analysts noted that the exclusion not only strips the firm of a major client but also risks sending a signal to other state-linked enterprises in the region. The timing, coinciding with a broader contraction in demand, has left PwC more exposed than rivals.

PwC has declined to comment publicly on the reasons behind the fallout, but people briefed on the matter told reporters it reflected tensions over previous advisory work and shifting client priorities.

The restructuring in the Middle East mirrors moves across the professional services sector. Deloitte, EY and KPMG have all implemented job cuts in different regions as firms recalibrate for a slower pipeline of deals. The industry is also adjusting to heightened regulatory scrutiny, rising compliance costs and shifts in how clients use consulting services.

For PwC, the Middle East has long been seen as a growth engine. The firm expanded aggressively across the Gulf during the past decade, capitalising on ambitious state-led projects in Saudi Arabia, the UAE and Qatar. But the new setback underscores how reliant the business has become on state-backed investment flows.