(credit: Nagahisa_Design – stock.adobe.com)

The Big Four accounting firm cut its global staff by 5,600 in the year to 30 June, bringing its total headcount below 365,000. This marks the first time PwC has shrunk its workforce since 2010. The move accompanies the quiet cancellation of a 2021 pledge to add 100,000 net new jobs by mid-2026.

PwC’s global chair, Mohamed Kande, confirmed the new direction, highlighting investments in technology. “We have rolled out AI tools and upskilled over 315,000 in AI which is boosting the productivity of our people,” he stated.

While a $12 billion (c. £9bn) investment target set in 2021 has been met a year early, the hiring goal, set during a post-pandemic consulting boom, has been dropped.

The firm’s annual report revealed global revenue grew by 2.7% to $57bn (c. £43bn), a slower pace than the previous year and lagging behind rivals Deloitte (4.8%) and EY (4.0%). Growth was particularly weak in its assurance and tax divisions. For the first time in recent years, PwC did not publish details of its net income.

The slowdown has been felt globally, with multiple rounds of lay-offs in the US and the Middle East, and reduced graduate recruitment in the UK. Regional performance varied, with growth accelerating in the Americas but slowing in Europe, the Middle East, and Africa. Revenues in the Asia-Pacific region declined by 4.1%, affected by recent scandals.

In Australia, a partner’s leak of confidential government information, and in China, PwC’s role as auditor for the developer Evergrande, have prompted global leadership to impose stricter controls. In response, Mr Kande is pushing for a focus on “quality over size”, which has seen PwC withdraw from 13 countries and reduce its total number of clients.

“We are relentlessly focused on quality and having the right client portfolio,” Mr Kande said. “The quality of the business is just as important as the size of the business.”