PwC slashes 1,500 US jobs amid tech disruption and industry changes

PwC's workforce reduction, following similar moves by Deloitte and KPMG, signals a broader trend in consulting firms, highlighting the importance of upskilling in emerging technologies and focusing on high-demand niches for job security

In what may be called a strategic workforce realignment, PricewaterhouseCoopers (PwC) has laid off approximately 1,500 employees in the United States. The decision, communicated to staff via Microsoft Teams invites in early May, affects about 2% of the firm’s domestic workforce and primarily impacts roles within the Audit and Tax divisions.

This latest move comes on the heels of earlier internal adjustments, suggesting an ongoing effort by PwC to adapt its workforce model to changing business demands. While the company attributed the job cuts to "historically low attrition rates over consecutive years," analysts point to deeper structural changes reshaping the accounting and consulting landscape.

Client priorities reshape staffing

PwC’s decision underscores a broader trend in the consulting industry, where shifting client priorities and macroeconomic uncertainty are prompting firms to rethink their service portfolios and talent needs. While areas such as digital transformation, cybersecurity, and ESG (Environmental, Social, and Governance) continue to attract investment, demand for traditional compliance and advisory services has become less predictable.

This pivot in client focus is resulting in tighter project pipelines, increased price competition, and greater scrutiny over consulting engagements—all of which are putting pressure on utilisation rates and profitability. For firms like PwC, streamlining operations has become essential.

Low turnover strains workforce balance

Low voluntary turnover, typically seen as a positive workforce indicator, has paradoxically contributed to the layoffs. With fewer employees leaving naturally and fewer new projects coming in, the firm has been left with an oversupply of staff relative to current demand.

This situation has intensified pressure to manage the size of the bench—employees who are not currently deployed on revenue-generating projects. While time on the bench is typically used for training or internal initiatives, prolonged inactivity is costly and unsustainable in a softening market.

Tech shift alters hiring models

Another major factor influencing PwC’s staffing decisions is the rapid adoption of Artificial Intelligence and automation technologies. With AI now capable of handling tasks such as data analysis, report generation, and elements of tax and audit services, firms are increasingly able to deliver work with fewer personnel.

PwC has been among the frontrunners in investing in AI tools to enhance efficiency and cut costs. However, these same investments are also fundamentally altering the skills required in the workforce—pushing the firm to transition from generalist hiring to more specialized, tech-savvy talent acquisition.

Impact on consulting industry

PwC’s workforce reduction mirrors similar moves by competitors like Deloitte and KPMG, signalling a widespread shift in how consulting and audit firms manage operations. For job seekers and professionals in the industry, the message is clear: upskilling in emerging technologies and aligning with high-demand niches will be critical for long-term career security.