PwC, one of the Big Four accounting firms, is facing significant challenges as it grapples with a record number of partner exits and the suspension of its flagship technology apprenticeship scheme.
These developments come amidst a broader slowdown in the consulting sector, forcing the firm to implement cost-saving measures to protect its profit margins.
The situation has raised concerns about the firm’s ability to navigate the evolving market dynamics while maintaining its reputation as a leader in the professional services industry.
Record Partner Exits
In 2024, PwC experienced an unprecedented wave of partner exits, with 123 partners leaving the firm, more than double the annual average since 2002.
The exodus peaked in December, when 74 partners departed in a single month, a stark contrast to the historical average of 12 exits during the same period.
This surge in departures coincided with the appointment of Marco Amitrano as the new senior partner for PwC’s UK and Middle East operations.
Similar patterns were observed in 2016 when Amitrano’s predecessor took over, suggesting that leadership transitions may contribute to partner turnover.
The firm currently has 987 equity partners, down from 1,057 in 2023.
Despite the reduction, PwC continues to lead its Big Four counterparts in partner numbers. EY, Deloitte, and KPMG have 873, 757, and 458 equity partners, respectively.
However, the decline in partner numbers has raised questions about the firm’s ability to retain top talent and sustain its leadership position in the industry.
Suspension of PwC Apprenticeship Scheme
PwC has also paused its “Flying Start” technology apprenticeship scheme, which has been running since 2018.
The program allowed students to gain work experience while pursuing a degree funded by PwC.
Historically, apprentices who achieved at least a 2:1 grade were offered permanent roles.
In 2024, 27 out of 91 apprentices graduating from the scheme were not offered job positions. This left many without enough time to apply to other firms.
Prevailing market conditions have prompted the authorities to suspend the scheme. It reflects the need to adapt to changing client demands.
This move has drawn criticism for its impact on students who had relied on the program as a pathway to secure employment in the professional services sector.
Broader Industry Challenges
The challenges faced by PwC are reflective of broader trends in the consulting and professional services industry.
A slowdown in demand has prompted firms to scale back recruitment and restructure their operations.
In 2024, PwC recruited approximately 1,500 graduates and school-leavers, a 16% decline from the previous year.
Rival firm KPMG reported an even steeper drop, reducing its graduate and apprentice hires by 33%.
To address declining revenues, PwC has implemented several cost-saving measures.
These include voluntary severance programs and introducing a new “managing director” title to retain senior staff without granting partnership.
Despite these efforts, the average profit per partner fell from over £1 million in 2022 to £862,000 in 2024.
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