PricewaterhouseCoopers (PwC), one of the world’s Big Four accounting and consulting firms, has announced a massive workforce reduction in the Middle East, cutting around 1,500 employees and 60 partners. The restructuring follows a fallout with Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s $925 billion (≈ ₹76.8 lakh crore) sovereign wealth fund, central to the country’s Vision 2030 diversification strategy.
Fallout With Saudi PIF
PwC faced a major setback in February 2025 when the PIF imposed a one-year ban, prohibiting the firm from securing any consulting or advisory contracts in Saudi Arabia. This blow not only cost PwC lucrative projects but also hurt its credibility in a region where sovereign wealth funds heavily influence consulting engagements.
The suspension coincided with declining advisory demand in the Gulf, leading PwC to dismiss 1,500 employees and 60 partners across the region. Both junior and senior staff were affected, including long-serving partners. Industry insiders link the layoffs to both the PIF crisis and weaker demand for consulting services amid oil market volatility and reduced state spending.
Interestingly, while employees faced mass layoffs, PwC partners’ pay in the UK and Middle East remained stable. Average partner earnings stood at £865,000 ($1.18 million / ₹9.08 crore) in 2025, only marginally higher than the previous year, highlighting the firm’s focus on shielding top leadership despite a difficult year.
PwC’s combined revenues for the UK and Middle East reached £6.35 billion in 2025, compared to £6.33 billion in 2024. While UK revenue stayed steady at £4.2 billion (≈ ₹44,100 crore), Middle East revenue stagnated at £1.98 billion (≈ ₹20,790 crore). The slowdown reflects a global slump in deal-making, mergers & acquisitions, and geopolitical uncertainty that has heavily impacted consulting opportunities.
Consulting Industry Outlook
Analysts warn that the PwC case highlights the risks global consulting firms face in politically sensitive regions. In the Gulf, success depends not just on technical expertise but also on navigating political and state-backed relationships. With PwC barred from PIF-linked projects for at least a year, rivals like Deloitte, EY, and KPMG may look to expand their foothold in the region.
PwC remains a global leader, but its Middle East crisis underscores the fragile balance between consulting, politics, and economic shifts in one of the world’s fastest-changing markets.
