PwC LLP will lay off 1,800 U.S. employees as the firm restructures its advisory practice and shifts its in-house technology developers to work more closely with core service lines. This reduction, affecting about 2.4% it’s U.S. workforce, was announced in a memo by Senior Partner Paul Griggs.

Employees in tax, assurance, and off-shore offices will also be affected, with layoff notices expected in October. The move follows a broader trend within the Big Four, with Deloitte, KPMG, and Ernst & Young also making significant reductions to their workforces.

PwC, which generated $22.7 billion in revenue in 2023, will now focus on embedding technology staff into client-facing roles to enhance service delivery.

Why It Matters: PwC’s restructuring underscores the shifting priorities within the consulting sector as firms adapt to technological advancements and market pressures. By embedding tech talent directly into service lines, the company aims to enhance its operational efficiency and responsiveness to client needs. This move also highlights the growing importance of AI and digital transformation in professional services.

• Layoffs Overview: PwC’s decision to cut 1,800 U.S. jobs represents a significant reduction in its workforce, targeting employees within advisory, technology, tax, and off-shore operations. The layoffs will impact approximately 2.4% of PwC’s 75,000 U.S. employees, with notices expected to be issued in October. This restructuring is part of an effort to streamline its advisory practice and adapt to shifting client demands, positioning the firm to focus more closely on its strategic priorities and high-growth areas.

• Tech Integration into Core Services: PwC is integrating its in-house technology developers directly into its main service lines, embedding these teams to work alongside client-facing professionals. This shift aims to bridge the gap between technology and service delivery, enhancing collaboration and ensuring that tech solutions are better aligned with client needs. By embedding tech talent within the firm’s core services, the company hopes to drive innovation, increase operational efficiency, and improve the overall client experience.

• Focus on Emerging Technologies: The restructuring plan places a strong emphasis on technology investment, particularly in areas like generative AI, data analytics, and automated business processes. PwC is directing resources toward key digital assets that promise to drive future growth and create value for clients.

• Broader Industry Context: PwC’s layoffs mirror broader trends within the Big Four accounting firms, which have all faced similar pressures to adjust their workforce and service models. Firms like Deloitte, KPMG, and Ernst & Young have also executed significant layoffs in recent months, highlighting a widespread industry shift toward efficiency and digital transformation. These moves reflect ongoing efforts to balance cost management with the need to invest in high-demand technology and advisory services.

• Strategic Adaptation and Future Growth: The restructuring is part of a broader effort by PwC to position itself for long-term success by reallocating resources towards areas with the greatest market potential. By reducing headcount in less critical roles and investing in emerging technologies, PwC aims to build a more agile and resilient business model. This approach is designed to create capacity for future investments, respond rapidly to market opportunities, and better meet the evolving needs of its clients.

Go Deeper -> PwC to Cut 1,800 U.S. Workers, Restructure In-House Technology Arm – Bloomberg Tax