In May 2025, PwC announced the layoff of approximately 1,500 employees in the United States, representing about 2% of its 75,000-person U.S. workforce. This move primarily affected the firm’s audit and tax divisions and was attributed to historically low attrition rates, leading to staffing surpluses.

There is no secret that less people have been leaving the big 4 in recent years. This is primarily due to better policies around working from home. It’s a lot easier to deal with big 4 headaches when you don’t have to go into the office everyday. Additionally, a lot of clients are working from home or are remote, so it’s not necessary to go into their offices. With little to no commuting, dealing with the stresses of the big 4 is a lot easier and fewer people are leaving.

It must also be remembered that the big 4 don’t necessarily do things that make sense. They laid off some new hires but are still hiring more people. I’m sure the people that were laid off had low utilization. The key is to stay utilized. This is always the case. If you don’t have good utilization, then the firms will view as a problem.

pwc 2025 layoffs

Understanding the May 2025 Layoffs

The decision followed a comprehensive internal review over several months. PwC had previously attempted to mitigate overcapacity by reallocating staff to higher-growth areas within the firm. However, these efforts were insufficient, prompting the need for layoffs.

Employees affected by the layoffs were notified via Microsoft Teams meeting invitations labeled “time sensitive,” a method that has drawn criticism for its abruptness. Some of those laid off had recently joined the firm or were anticipating promotions, making the news particularly unexpected.

Contextualizing the Layoffs

This marks the second significant round of layoffs at PwC within a year. In September 2024, the firm cut approximately 1,800 jobs, mainly in its advisory and products and technology divisions. These reductions reflect broader challenges faced by major accounting firms, including shifts in client demand, economic uncertainties, and the need to adapt to technological advancements.

The accounting industry as a whole is experiencing similar trends. Other Big Four firms, such as Deloitte and KPMG, have also implemented staff reductions in response to reduced demand in advisory services and declining post-pandemic consulting growth.

Looking Ahead

PwC has stated that it will honor existing offers made to interns and new hires, although it plans to scale back future campus recruitment efforts. The firm emphasizes that these layoffs are part of a strategic realignment to better position itself for future growth and to navigate the evolving business landscape.

As the professional services industry continues to adapt to changing market conditions, firms like PwC are reevaluating their workforce strategies to maintain competitiveness and financial health.