In a major pivot, PwC has reduced its global workforce over the past year and quietly abandoned its ambitious plan to add 100,000 employees within five years. The decision comes amid slowing revenue growth, rising operational risks, and the accelerating influence of artificial intelligence.
During the fiscal year ending June 30, 2025, PwC laid off about 5,600 employees, bringing its total headcount to under 365,000. The firm omitted mention of its previous hiring target in its latest annual report, signaling a shift in strategic priorities.
PwC’s global revenue grew only modestly, by around 2.7 percent, lagging behind its Big Four rivals. While advisory services saw some growth, tax and assurance operations recorded weak increases. In a break from tradition, the firm did not disclose net income figures in its report.
According to global chair Mohamed Kande, “We continue to hit our investment targets, and we continue to hire.” But much of the firm’s recent investment has gone into AI and staff reskilling: more than 315,000 employees have been trained to use new tools aimed at boosting productivity. Kande emphasized a new focus: “We are relentlessly focused on quality and having the right client portfolio,” rather than growing purely by size.
Some of the downsizing reflects reputational and regulatory pressures. PwC withdrew from 13 markets, mostly in Africa, and shed thousands of clients after scandals in China and Australia. In Australia, a partner leaked confidential government information, and in China, PwC audited Evergrande, which was revealed to have overstated revenues.
Even in the UK, where PwC once hired thousands of graduates annually, recruitment is being scaled back. The UK arm reduced its graduate intake from 1,500 to 1,300 in 2025, citing a weak local economy and AI-induced changes to job roles as the primary drivers.
This marks the first time PwC has shrunk its workforce since the global financial crisis. The firm’s original 2021 plan to add 100,000 staff by mid-2026 now appears sidelined in favor of more cautious, risk-aware growth.
This reversal underscores broader pressures in professional services: firms are tightening belts amid weaker global demand, rising costs, and digital disruption. PwC’s retrenchment could foreshadow reduced hiring in related sectors, weakening aggregate demand while amplifying the urgency for economies to stimulate innovation, skills development, and investment in sustainable growth.
