PwC UK profits edge up as headcount reductions take effect
Big Four giant PwC UK has shown steady financial recovery, with revenue, profits, and profit per partner all increasing slightly compared to the previous year, largely due to the implementation of headcount cuts.
For the year ended 30 June 2025, PwC UK generated £6.35bn in revenue, up 0.4 per cent on the previous year.
Its total group profit was £1.37bn, up from £1.14bn in 2024, while profit per UK partner averaged £865,000, up from £862,000.
Among the firm’s business groups, it recorded revenue growth for tax, deals, and audit, with tax leading the way at 6 per cent, driven by complex regulatory changes.
However, its consulting and risk practices faced tougher market conditions, resulting in revenues for each declining by 3 per cent.
Senior partner Marco Amitrano says that “against a challenging macro backdrop”, the firm has taken “decisive steps to position our business for sustainable growth”.
Like the other Big Four firms, PwC has been reducing roles over the last couple of years as it battled slow demand but expanded its practices.
In March, it was reported that the firm cut 123 partners while also pausing its tech apprenticeship scheme.
In its results on Thursday morning, PwC said: “As part of our transformation, we took the tough decision to reduce roles in some areas, but maintained our commitment to pay and promotions, with overall spend on reward in line with last year.”
Internally, the firm established a shadow leadership team to “bring the voice and ideas of our people into the firm’s board-level decision making”.
It has also introduced a new managing director grade, which aims to diversify the structure and create new career options for people.
The firm noted in its results that it introduced a new hybrid working policy, which encourages staff to be together at least three days a week.
This comes after it was reported earlier this month that PwC has increased its monitoring of employees’ office attendance with a ‘traffic-light’ system.
Tech push
PwC has been investing hard in technology. Over the past year, it launched Tech Catalyst, a dedicated unit for AI and technology innovation.
Alongside this, the firm invested in its staff tech skills through a range of initiatives, notably launching the AI Elevation Studio, a platform designed to support everyone.
However, while the firms focus on AI, the consultancy sector may be most affected by the advancement in this technology.
AI is reshaping the consultancy sector by automating tasks traditionally performed by junior staff, leading to job cuts. In addition to this, the AI advancements at other businesses are shifting their focus from offering advice to providing measurable outcomes for clients.
While there has also been intensified competition, forcing larger firms to reduce prices and adopt new business models to stay competitive.
Speaking to Morning Wire in July, Tom Rodenhauser, managing partner of Kennedy Intelligence, said: “Some of the major strategy firms will have to face the reality of how far they can go into the technology and the operation space because that’s a shift for them.”
“The investment requires the expertise of having to manage services and do things their product has never been built for,” he added.