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%.
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.
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.