PricewaterhouseCoopers (PwC) has laid off approximately 1,500 employees and 60 partners across its Middle East operations, marking one of the firm’s most significant regional workforce reductions in recent years.
The decision follows a breakdown in relations with Saudi Arabia’s Public Investment Fund (PIF), which imposed a one-year ban on PwC from February 2025, barring the firm from participating in any consulting or advisory contracts within the kingdom.
The PIF, which manages over $900 billion in assets and plays a central role in Saudi Arabia’s Vision 2030 economic diversification strategy, had been a key client for PwC.
The ban has effectively excluded the firm from one of the region’s most lucrative markets, compounding existing pressures from a slowdown in consulting demand across the Gulf Cooperation Council (GCC) countries.
PwC Restructuring Across Regional Offices
The layoffs began earlier this year and affected both senior partners and employees across PwC’s offices in the Middle East.
Sources cited by the Financial Times and Bloomberg confirmed that the restructuring was driven by both the fallout with the PIF and broader market challenges, including declining deal activity and reduced discretionary spending by clients.
The firm’s decision to downsize reflects a strategic recalibration in response to leaner market conditions.
PwC is not alone in this trend—other global consultancies such as Deloitte, EY, and KPMG have also initiated cost-cutting measures as the post-pandemic M&A boom fades.
Partner Compensation Remains Stable Despite Cuts
Despite the layoffs, partner compensation at PwC’s UK and Middle East units remained largely unchanged.
According to the firm’s annual report, partners earned an average of £865,000 ($1.18 million) in the year ending June 30, 2025, a slight increase from £862,000 the previous year.
This stability in partner payouts contrasts with the firm’s 2022 performance, when average partner pay exceeded £1 million during a period of high demand for advisory services.
The decision to maintain partner earnings amid widespread job cuts has drawn attention, particularly in light of the firm’s muted revenue growth.
Revenue Growth Stalls Across the Region
PwC’s total revenue rose marginally to £6.35 billion in 2025, up from £6.33 billion the previous year.
Revenue in the UK remained steady at £4.2 billion, while the Middle East business generated £1.98 billion—unchanged from the previous year.
The stagnation in fee income reflects the impact of losing access to Saudi Arabia’s advisory mandates and a broader slowdown in consulting demand.
The firm’s earlier growth, driven by pandemic-era M&A activity, has now plateaued, prompting a shift toward leaner operations.
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