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Sluggish revenue growth leads to job cuts at PwC UK

Large accounting company needing to make difficult cuts in certain departments due to economic downturn following a surge in business during the pandemic period.

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U.K. division of accounting giant PwC reduces workforce due to decline in revenue growth rate
U.K. division of accounting giant PwC reduces workforce due to decline in revenue growth rate

Sluggish revenue growth leads to job cuts at PwC UK

PwC UK, one of the world's largest professional services networks, has reported a flattening of profits and job cuts, as the company implements a strategy to protect profitability from rising costs. Marco Amitrano, PwC's senior partner, has been at the helm of these changes. In a move to safeguard the company's financial standing, he has focused on cost-cutting measures, including job reductions. However, the exact number of job cuts has not been disclosed. The average earnings for PwC UK's near-1,000 UK partners have seen a dip from a record £920,000 in 2022 to £865,000 this year, and further to £862,000 last year. Staff have been warned that pay rises will be lower this year compared to previous years. Despite the challenges, PwC's overall profits rose to £1.37 billion, marking a recovery from a 14% decline to £1.14bn last year. This increase was driven by growth in the tax practice (6%) and the audit and deals divisions, with revenues of £1.5 billion and £1 billion respectively, showing growth of 0.3% and 3.7% each. However, not all divisions have fared well. The consulting and risk advisory units contracted about 3% in the UK due to 'tougher market conditions'. Moreover, PwC UK's revenue growth for the year to June 2025 was 0.4%, a significant drop from the previous three years where growth hovered between 9% and 16%. In a bid to adapt to the changing landscape, PwC UK has undergone a rebrand and a significant overhaul of its business, overseen by Marco Amitrano. This includes the creation of a stand-alone technology and artificial intelligence unit, and the reorganisation of other service lines. A new job title has also been introduced as an alternative path to becoming an equity partner. The company's Middle East practice, however, has been a bright spot. PwC's broader Middle East footprint beat the other Big Four firms' revenue growth by a wide margin last year. The predictions for the traditional television region, however, have been controversial. PwC reported a significant flattening of the growth rate in 2025, indicating a 1% decline in traditional TV revenue in 2024 and a forecasted decline continuing to 2029. The changes have not been without consequences. A record number of partners departed in 2024, and 175 junior auditors were cut. PwC UK's employment numbers stood at approximately 33,700 in the year to June 2025, down from 36,000 the previous year. The company's total revenue for the year to June 2025 was £6.35 billion (€7.3 billion). Despite the challenges, PwC UK remains committed to navigating the changing business landscape and positioning itself for long-term success.

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