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PwC defends plans to cut 600 jobs rather than bosses’ pay | PwC

PwC’s chair has defended plans to cut up to 600 jobs rather than cut accomplice pay amid a slowdown in shopper demand, saying it was essential to provide “competitive” pay packages to senior workers.

The accounting and consultancy agency mentioned it was making an attempt to right-size the enterprise after weaker progress, rising prices and a drop within the variety of staff quitting on their very own accord, in a course of often referred to as pure attrition.

PwC’s personal attrition price has dropped to 10% from 15% in latest months, in opposition to a backdrop of falling job vacancies at rival corporations and startups.

Kevin Ellis, chair of PwC UK, said: ‘You have got to be competitive at all grades.’
Kevin Ellis, chair of PwC UK, mentioned: ‘You have got to be competitive at all grades.’ Photograph: PwC

The job cuts, which account for about 2.4% of its roughly 25,000 staff, will primarily have an effect on its advisory enterprise however may even hit workers in its tax division. It can be anticipated to have an effect on nearly each stage of seniority, although its most senior companions and workers of their first 12 months of labor are possible to be shielded from the cuts.

The information comes simply months after PwC revealed extra than 1,000 of its UK companions can be paid £906,000 every, marking a slight fall from file payouts a 12 months earlier, when their £920,000 fundamental pay was topped up by a £100,000 bonus.

PwC’s UK chair Kevin Ellis defended the agency’s determination to cut jobs rather than trim accomplice earnings. “When you are running a business you have got to be competitive at all grades, including the partner grade,” he informed the Financial Times, which first reported the information.

The agency revealed in August that its UK revenue fell from £1.5bn to £1.3bn in 2022, though the prior 12 months’s determine was boosted by a £139m acquire from the sale of its international mobility enterprise. It additionally mentioned this summer time that UK workers numbers had elevated from from 24,500 to 26,000 in 2022.

The Big Four accounting agency is anticipated to begin making workers compulsorily redundant except staff begin to depart voluntarily, and is anticipated to provide extra beneficiant leaving packages.

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“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,” PwC mentioned in an announcement. “Decisions about jobs are never taken lightly – this is about flexing our business to demand. There are still areas of good growth and recruitment.”

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