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The decision specifically affects graduates who joined PwC’s consulting practice in late 2022. Instead of the standard July promotion, these employees will remain on the graduate scheme until January 2025, a six-month delay that also postpones a potential pay increase.

PwC attributes the delay to a reduction in business demand and broader economic headwinds. The consulting industry, which experienced a post-pandemic surge, is now facing slower client spending and rising costs. Additionally, a decline in lucrative opportunities at technology firms and start-ups has led many employees to remain in their existing consulting roles, creating a surplus of talent within firms like PwC, the Financial Times reports.

This scenario mirrors broader trends across the Big Four. Deloitte recently announced additional job cuts, and EY has shed staff as well. In November 2023, PwC confirmed plans to cut up to 600 jobs after experiencing a sharp drop in staff attrition rates.

The firm’s latest financial results further illustrate the squeeze. Despite hiring over 3,500 graduates and school leavers since September 2022, PwC’s profits have stagnated. Average pay for UK partners fell to £906,000 in the year to June 2023, down from £1.03 million in the prior year.