PwC starts mass lay-off in China amid exodus of clients in the wake of Evergrande’s fraud
- At least 100 staff from different teams at PwC’s offices in Beijing, Shanghai and other locations are being let go, according to people familiar with the matter
PricewaterhouseCoopers is cutting staff across its China operations, according to people familiar with the matter, after an exodus of corporate clients diminished the accounting firm’s revenue prospects in the country.
At least 100 staffers from different teams at PwC China’s offices in Beijing, Shanghai and other locations are being let go, the people said, asking not to be identified discussing private matters. More than half of one team was laid off, according to one of the people. The final tally of firmwide cuts wasn’t immediately clear.
“In light of changes to the external environment, we are making some adjustments to better optimise our organisational structure to align with market demand,” a PwC spokesperson said in response to a query from Bloomberg News. The firm did not provide details on the number of staffers who were cut.
“These adjustments are a difficult decision. We are actively communicating with our people and will ensure that the plan is in compliance with all relevant labour laws in China,” the spokesperson added.
Before the latest round of lay-offs, the threat of regulatory penalties and the loss of Chinese corporate clients had unnerved PwC China staffers and prompted some to seek opportunities elsewhere, Bloomberg reported last week. Partners at other major international and domestic accounting firms received dozens of job inquiries from their peers at PwC, people familiar with the matter had said.
