PwC's growth stutters as it cuts head count and falls behind its Big Four rivals

Core Insights - PwC's global revenue grew by 2.9% to $56.9 billion in the 2025 financial year, marking a slowdown for the third consecutive year [1][6] - The firm reported a significant reduction in its global headcount by 5,600, reversing a previous strategy aimed at workforce expansion [2][6] - Economic uncertainty and the potential impact of AI are prompting PwC to rethink its business structure and pricing models [4] Financial Performance - The revenue growth rate for PwC dropped from 9.9% in the 2024 financial year to 3.7% [1] - In comparison, competitors Deloitte and EY reported growth rates of 5% and 4% respectively in their most recent earnings [5] Strategic Changes - PwC plans to cut graduate hiring by a third over the next three years and has reduced entry-level recruitment in the UK [3] - The firm is focusing on reinvention and adapting to changing market conditions, as stated by PwC chairman Mohamed Kande [2][4][6] Competitive Landscape - EY is closing the revenue gap with PwC, with a difference of $3.7 billion in their 2025 results [7] - PwC's advisory business is performing comparably to its competitors, but its assurance and tax and legal services are lagging behind [7]