PwC to cut 175 UK junior auditors amid market slowdown
What's the story
PricewaterhouseCoopers (PwC) plans to lay off around 175 junior auditors in the UK by August, according to Financial Times. The decision comes as part of a wider response to a market slowdown that has affected demand for certain professional services. PwC is also planning to reduce salary hikes for its UK staff, offering them a 2.5% pay rise from July, down from last year's 3%.
Strategic adjustments
Layoffs, salary cuts across sectors
The decision to lay off junior auditors and reduce salary hikes comes as the professional services sector grapples with a slowdown. FT reported that the industry is facing weaker demand for certain services and a "sharp decline" in voluntary staff departures, both of which have surprised firms. PwC's move is part of its strategy to navigate these challenging market conditions.
Information
Non-British nationals on company-sponsored visas also affected
The layoffs at PwC also affect non-British nationals on visas sponsored by the company, according to the report. These employees are more expensive to keep on the payroll than their UK counterparts.