PWC SHRINKS GLOBAL WORKFORCE FOR FIRST TIME SINCE FINANCIAL CRISIS AS AI ERA DAWNS

PwC has reduced its global headcount for the first time since 2010, marking a significant change in direction for the Big Four professional services firm. The cut in staff numbers is a direct result of an ambitious investment programme aimed at accelerating artificial intelligence capabilities, combined with shifting economic conditions and declining business confidence.

The firm invested more than $1.5 billion in boosting its AI infrastructure in the last financial year, according to its latest annual report. In spite of previous commitments from former chairman Bob Moritz to increase global headcount by 100,000 before next summer, the company trimmed its global workforce by 5,600 in the twelve months to the end of June 2025. This moved total staff numbers below 365,000, with reductions seen across all geographies. It is the first contraction since the aftermath of the 2008 financial crisis.

Mohamed Kande, the new global chairman, described this as a ‘defining moment, the dawn of the intelligence age.’ He noted that artificial intelligence, shifting geopolitical realities, and environmental changes are altering the business landscape faster than ever before. Traditional sectors are being reinvented, new ecosystems are emerging, and significant capital is moving towards large-scale innovation, he added.

The firm’s decision to curb hiring reflects a tough economic background. PwC UK senior partner Marco Amitrano observed that weak business confidence and subdued deal activity were the primary factors in lowering graduate recruitment, though he acknowledged that AI is reshaping roles throughout the organisation.

Revenue growth has also slowed. PwC posted a 2.7 per cent increase in global revenue to $56.9 billion in the twelve months to the end of June, slowing from the 3.7 per cent growth achieved in the previous year. This pace trails behind major rivals Deloitte and EY, which reported annual growth rates of 4.8 per cent and 4 per cent respectively. KPMG, the fourth of the Big Four, customarily publishes results later in the year.

Challenges have been acute in Asia Pacific, where PwC’s reputation suffered due to a high-profile tax controversy in Australia and its audit work for Chinese developer Evergrande. In response, Kande has instructed regional leaders to avoid risky clients, and the firm has exited 13 countries, largely in Africa, shedding around 5,000 clients and focusing on a global client base just over 175,000.

The firm’s audit division grew revenues by 0.9 per cent to $19.85 billion, and advisory services increased by 4.4 per cent to $24.39 billion, though momentum faded later in the year amid global trade strife. Tax services brought in $12.74 billion, up 2.8 per cent, in what the company described as a solid performance in difficult circumstances.