PwC has experienced a record number of partner exits in the UK, while also pausing its technology apprenticeship scheme, reported Financial Times.
In 2024, 123 partners left PwC, more than double the annual average since 2002.
This reduction in partner numbers and junior recruitment is part of the firm’s strategy to protect its annual profit pool, which is close to £1m ($1.29m) per partner.
The firm is also facing a slowdown in demand across the consulting sector.
PwC has paused its “flying start” technology apprenticeship scheme, which has been running since 2018.
The scheme allowed apprentices to gain work experience alongside a degree funded by PwC.
A person close to the firm confirmed the pause.
Previously, students who achieved at least a 2:1 grade were offered permanent roles.
However, 27 of the 91 apprentices graduating this year will not receive job offers. This decision has impacted some students who missed opportunities to apply to other Big Four firms because they were expecting job offers from PwC.
According to an email seen by the publication, the change was because of “market conditions and as we respond to changes in our clients’ needs”.
Graduate and school-leaver recruitment has declined at top accounting firms.
In 2024, PwC recruited about 1,500 people from university, college, and school, compared to 1,793 in the previous year.
Rival KPMG hired 942 graduates and apprentices, a 33% decrease from the year before.
PwC has also implemented cost-saving measures, including voluntary severance and a new “managing director” title to retain senior staff without promoting them to partnership.
PwC partners were paid an average of over £1m in the 12 months to June 2022, but this figure has fallen to £862,000 in 2024.
Companies House data shows 74 PwC partners exited in December alone, a significant increase from the average of 12 exits in the same month over the past 21 years.
PwC’s partner numbers have increased over the years, particularly after combining with the Middle East firm in 2009.
Currently, PwC has 987 equity partners, down from 1,057 in 2023. EY and Deloitte have 873 and 757 equity partners, respectively, while KPMG has 458.
PwC declined to comment on these developments.
In separate news, KPMG is reportedly looking to merge dozens of national partnerships to enhance growth and prevent audit scandals.
The firm plans to reduce its “economic units” from over 100 to as few as 32 by next year.
