More PwC partners take early retirement amid consulting slowdown
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- Dozens of UK partners at PwC will take early retirement in December, Sky News reported.
- The larger-than-usual cohort comes as Big Four firms grapple with declining revenues.
- Partner payouts at PwC also took a hit this year, declining by 5%.
More PwC partners than usual will take early retirement at the end of this year, marking another shake-up at the firm's UK division since the appointment of a new boss, Marco Amitrano, in Spring.
PwC's 1,030 UK partners were informed this week via a voice memo from Amitrano that dozens of partners would take early retirement next month, Sky News reported.
The cohort of early retirees was larger than usual, though one insider disputed that the numbers involved were "significant," Sky News reported.
The Big Four firm appointed 60 new UK partners earlier this year.
Senior employees at the Big Four consultancies — Deloitte, EY, KPMG, and PwC, all of which are privately held — can be promoted to partners, and some are offered equity ownership in the business. In addition to salary and bonuses, equity partners traditionally receive a share of annual profits.
The jump in partners taking early retirement follows a series of changes following Amitrano's elevation to senior partner for the UK and Middle East in April.
Amitrano has launched an overhaul of operations in the UK, including creating a standalone technology and artificial intelligence unit and merging other parts of the business to create six new teams, the FT reported in October.
Almost all the major consulting firms have been grappling with a slowdown in business this year following the end of the pandemic-era rush on advisory services. The firms have been restructuring divisions, laying off employees, and making cuts to limit revenue decline.
Partner payouts have been one area targeted for cuts at EY, Deloitte, and PwC. UK partners at PwC took home an average of £862,000 (about $1.1 million) this financial year, 5% less than they did in 2023.
PwC, which is the largest of the Big Four by revenue in the UK, is also facing higher taxes per employee after the country's recently elected Labour government increased the rate of national insurance contributions (a tax on earnings) employers must pay.
PwC declined to comment.
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