The Blubber

PricewaterhouseCoopers (PwC) is laying off about 1,800 employees in its U.S. unit, marking its first formal layoffs since 2009, as part of a restructuring of its products and technology group. The goal is to simplify operations and respond to decreasing demand for certain advisory services.

The cuts, affecting about 2.5% of the U.S. workforce, are mainly focused on the U.S. advisory and products and technology sectors, according to sources familiar with the situation. The layoffs, which include employees from associates to managing directors, will impact business services, audit, and tax divisions. Roughly half of the layoffs will take place offshore.

PwC notified staff of the layoffs and restructuring in a memo sent Wednesday, obtained by The Wall Street Journal. “There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy,” said Paul Griggs, PwC’s U.S. leader, in the memo. Griggs emphasized that the restructuring is meant to position PwC for the future by creating capacity for investment and responding to current and future market opportunities. He also acknowledged the significance of the announcement coming on September 11, a day when the firm lost five colleagues in the 2001 attacks.

This marks PwC's first formal layoffs in the U.S. since 2009. In 2017, the firm underwent a restructuring, offering employees new roles, with some leaving the company if they declined the changes. Meanwhile, competitors like EY, KPMG, and Deloitte have laid off thousands of U.S. employees during the same period.

The restructuring will also see PwC embed its products and technology teams more deeply within individual business lines and streamline operations in business services. This move comes after Griggs took over as U.S. leader in May, succeeding Tim Ryan. In July, Griggs implemented a major structural overhaul, reverting PwC’s U.S. unit to three business lines, with tax once again operating as a standalone unit after previously being combined with accounting.

Tim Grady, PwC’s U.S. chief operating officer, said the restructuring aims to align the firm’s workforce with its long-term strategy by attracting and shifting talent to critical areas. Joe Atkinson, the firm’s former chief products and technology officer, was appointed global chief AI officer in June. Atkinson had previously emphasized the importance of equipping employees with the right tools and skills rather than simply keeping them updated on industry trends.

PwC’s products and technologies address various corporate challenges such as supply chain risks, data privacy, and regulatory compliance. One of its platforms, ProEdge, offers over 150 immersive learning experiences to help employees develop new skills. Going forward, PwC will continue to evaluate which products to prioritize and which to discontinue, according to sources familiar with the matter.