PwC has announced a significant reduction in its graduate hiring program in the UK, cutting 200 entry-level roles this year.
The move brings the firm’s annual intake down from 1,500 to 1,300. The decision reflects the dual challenges of slowing economic activity and rapid technological disruption.
PwC leadership cites productivity struggles and the growing influence of artificial intelligence (AI) as major factors.
Marco Amitrano, PwC UK’s Chief, explained in a LinkedIn post that graduate hiring is “under pressure” due to global volatility and the transformative nature of technology.
“Our entry-level numbers are lower this year, reflecting the wider slowdown in investment, hiring, and deal-making across the economy,” he added.
Growth Slows, Costs Rise
PwC’s decision comes against a backdrop of slowing growth in the consulting sector. In its latest global accounts, the firm reported revenues of $55.4 billion, representing a 3.7% increase in local currency and 4.3% in US dollars.
While still positive, this rise was considerably weaker compared to prior years, when revenues jumped from $45.1 billion in 2021 to $53.1 billion in 2023.
The firm had expanded its workforce to meet earlier spikes in demand. With that demand now plateauing, internal costs remain elevated, squeezing margins and raising concerns over partner pay-outs.
Technology and Productivity Pressures
Amitrano, who himself joined PwC as a graduate more than three decades ago, suggested that the trend may persist.
Writing in The Times, he argued that innovation in AI is already reshaping roles and may lead to long-term changes in graduate hiring.
PwC research indicates that job postings for AI-exposed roles are expanding at a slower rate than those with lower exposure—a gap that is widening.
At the same time, he pointed to poor productivity as the single biggest driver of the cuts, with businesses both in the UK and internationally taking a cautious stance on new investment and hiring.
Cuts Not Limited to the UK
Reports suggest PwC is considering broader changes to its entry-level strategy. In the US, Business Insider revealed plans to cut nearly one-third of graduate roles over the next three years.
The firm expects AI tools to absorb some of the workload previously handled by junior staff.
AI Hype Versus Reality
The shift reflects a wider trend in global business. Salesforce, Amazon, and Klarna have all made similar moves, citing AI as justification for reducing headcount.
Yet, research shows that the promised productivity benefits of AI are still far from being realized. A recent MIT study found that 95% of AI pilots had failed to deliver a return on investment.
Klarna, in particular, has been forced to backtrack, rehiring staff after realizing automation alone could not sustain operations.
Experts warn that relying too heavily on AI at the expense of graduate talent may have unintended consequences.
Long-Term Talent Pipeline at Risk
Industry leaders caution that reducing graduate roles could damage the consulting sector’s ability to cultivate future leaders.
“Graduate roles are intended to be necessary training for the industry professionals of tomorrow,” said Jon Bance, COO at independent advisory firm Leading Resolutions.
“Replacing graduates entirely with AI may offer a short-term efficiency burst, but ultimately it risks undermining the sector’s future.”
With AI adoption still unproven in many areas and economic headwinds persisting, PwC’s move reflects both immediate pressures and a glimpse into how technology may reshape professional services in the coming decade.
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