PwC defends decision to cut 600 jobs
The job cuts, which will affect up to 2.4% of the UK firm’s 25,000 employees, are expected to be directed primarily at the advisory business but could also hit the tax department
PwC’s chair has defended the firm’s plans to cut 600 jobs amid a plummeting number of resignations pushing the firm to make staff redundant, the Financial Times has reported.
The accountancy and consultancy firm is expected to launch a voluntary redundancy programme but will start cutting jobs on a mandatory basis if not enough employees decide to leave.
PwC’s attrition rate has dropped to 10% in recent months despite a backdrop of falling vacancies at rival firms, the Financial Times said.
The job cuts, which will affect up to 2.4% of the UK firm’s 25,000 employees, are expected to be directed primarily at the advisory business but could also hit the tax department.
PwC’s chair Kevin Ellis justified the redundancy programme over the possibility of cutting job offers to graduates and school-leavers, which is why staff in their first year at the staff will not be affected by redundancies.
Keeping staff in their current roles rather than continuing to hire would risk making the business “lopsided”, Ellis said.
The news comes as it was revealed that the firm’s partners are paid an average £906,000, a slight fall from last year’s payout of £920,000.
In a statement to Accountancy Today, PwC said: “In light of lower than normal attrition rates and subdued growth in parts of the business, we are making targeted voluntary severance offers to some of our people. Decisions about jobs are never taken lightly – this is about flexing our business to demand. There are still areas of good growth and recruitment.”
