- PricewaterhouseCoopers is set 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 firm since 2009
A Big Four accountancy firm is laying off around 1,800 of its white collar workers and restructuring its competitive technology practice, in its first formal layoffs since 2009.
PricewaterhouseCoopers is laying off scores of workers from its US arm, primarily from its American advisory, products and technology operations, the Wall Street Journal reported.
Of the 1,800 people being laid off, who range from associates to managing directors, around half are offshore. The affected workers, who make up around 2.5% of the firm’s US operations, will all be notified in October, the business paper reported.
Paul Griggs, PwC’s US leader, said in a memo to American staff: ‘There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy.
‘Ultimately, we are positioning our firm for the future, creating 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 announcement was being shared on the anniversary of the September 11 attacks, in which five PwC workers died.
PricewaterhouseCoopers is laying off scores of workers from its US arm (File image)
PwC is the only Big Four firm that hasn’t laid anyone off in the US in the last two years (File image)
PwC hasn’t formally laid anyone off since 2009, though in 2017 it offered new roles to employees during restructuring. If employees declined the new roles, they were made to leave.
It is the only Big Four firm that hasn’t laid anyone off in the US in the last two years. The others, EY, KPMG and Deloitte, all laid off thousands of American white collar workers in that time.
Tim Grady, PwC’s U.S. chief operating officer, said in a statement to The Wall Street Journal: ‘To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most.’
As part of a global drive for efficiency, the firm’s UK arm will soon begin tracking its employees’ locations and insist they are at their desk at least three days a week in a crackdown on office attendance.
The firm informed its 26,000 UK employees that from January it would start tracking their working location.
Managing partner Laura Hinton told staff last week they would begin sending employees their working location data every month, adding they must now spend ‘a minimum of three days a week’ in the office or at client sites.
She acknowledged that everyone at the company ‘benefits’ from a hybrid working policy, but that previous guidance was ‘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 a half day on Friday, which was a pandemic perk.
In her memo, Ms Hinton argued relationships are ‘more easily built and sustained face-to-face’.
She added it provides a better client experience and learning environment for staff.