PwC joins Big Four rivals in slashing UK jobs
PwC plans to cut up to 600 jobs in the UK, according to a report from the Financial Times on Tuesday.
FT sources said the accountancy firm will launch a voluntary redundancy programme but will cut jobs on a compulsory basis if not enough people decide to leave. It will be directed mainly at PwC’s advisory business.
PwC was the last of the Big Four accounting firms to hold out against redundancies but acted after a fall in the number of people resigning in recent months. Deloitte is cutting around 800 jobs in the UK, while EY and KPMG have both launched redundancy programmes.
The percentage of staff leaving each year has fallen 5 percentage points in recent months and is now at around 10 per cent, according to those familiar with the matter.
The planned redundancy would result in fewer people leaving than if attrition were at normal levels, they added.
PwC told City A.M that decisions about jobs are “never taken lightly”.
“In light of lower than normal attrition rates and subdued growth in parts of the business, we are making targeted voluntary severance offers to some of our people. Decisions about jobs are never taken lightly – this is about flexing our business to demand. There are still areas of good growth and recruitment,” the firm said.
PwC UK Chair Kevin Ellis told the FT that the firm had decided to launch the redundancy round rather than delaying or cancelling job offers to graduates and school-leavers.
He said it partly a matter of “fairness” but added that slowing down hiring would also have a negative impact on the firm’s diversity and social mobility efforts.
When asked by the FT whether it was right to make redundancies rather than taking a hit to partner profits, Ellis said: “When you are running a business you have got to be competitive at all grades, including the partner grade.”