PwC cuts 1500 jobs and 60 partners amidst regional fallout

PricewaterhouseCoopers (PwC) is cutting around 1,500 staff members and 60 partners with a major focus on its Middle East operations. The cuts at PwC are directly tied to a significant business challenge in the Middle East, where the firm’s relationship with Saudi Arabia’s Public Investment Fund (PIF) has soured. The PIF, which controls more than USD 900 billion in assets and directs Saudi Arabia’s economic diversification, has reportedly banned PwC from winning advisory contracts for one year. This ban has effectively locked PwC out of a critical market, compounding existing pressures from a regional downturn.

The firm's revenue across its UK and Middle East units saw only a marginal increase, from GBP 6.33 billion to GBP 6.35 billion, demonstrating a stalled fee income. This contrasts with the period of high demand during the pandemic-era merger and acquisition boom when partner pay at PwC's UK and Middle East business averaged over GBP 1 million. While partner pay for the most recent financial year remained high at GBP 865,000, it reflects a plateau in earnings.

PwC's workforce reduction is not an isolated event. Other major consulting firms, including Deloitte, EY, and KPMG, have also made staff cuts as they adjust to a slower market. The PwC situation highlights how quickly a firm's fortunes can change when relationships with key state-backed clients in politically sensitive markets break down. The consulting sector, which expanded aggressively in the past decade, now faces a period of recalibration, focusing on leaner operations and cost management as global economic uncertainty continues.