PricewaterhouseCoopers LLP (PwC) is undertaking one of its sharpest workforce reductions in recent years, cutting around 1,500 employees and 60 partners across the Middle East after a breakdown in its relationship with Saudi Arabia’s powerful Public Investment Fund (PIF). The restructuring, confirmed by reports, underscores the vulnerability of global consulting firms operating in politically and economically sensitive markets.
Fallout With Saudi Arabia’s PIF
The crisis stems from PwC’s deteriorating ties with the PIF, Saudi Arabia’s $925 billion(≈ ₹76.8 lakh crore) sovereign wealth fund that has become central to the kingdom’s Vision 2030 diversification strategy. In February 2025, the fund imposed a year-long ban on PwC, barring it from any consulting or advisory contracts inside the kingdom.
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For PwC, which had built significant business in Saudi Arabia, the suspension was a devastating blow. The firm not only lost direct access to lucrative PIF projects but also saw its credibility questioned in a region where sovereign wealth funds wield enormous influence over consulting engagements.
Job Cuts and Restructuring
The ban coincided with a broader downturn in advisory demand across the Middle East. By February 2025, PwC began cutting staff across its Gulf offices, ultimately dismissing around 1,500 employees and 60 partners. The cuts affected both senior and junior ranks, with several long-standing partners reportedly departing under the restructuring drive.
According to insiders, the layoffs reflected both the PIF fallout and a tightening market where consulting fees were under pressure. The Middle East, once a growth engine for the Big Four firms, has increasingly faced economic headwinds from oil market volatility and reduced state spending.
Partner Pay Remains Stable
Despite the turmoil, compensation for PwC’s UK and Middle East partners remained largely unchanged. A data cited showed average partner earnings at £865,000 ($1.18 million)(≈ ₹9.08 crore) in the year ending June 2025, only marginally up from £862,000 (≈ ₹9.06 crore)the year before.
The stability in partner payouts, even amid widespread layoffs, highlights both PwC’s efforts to shield senior staff and the firm’s limited profitability growth. In contrast, during the 2022 M&A boom, PwC partners had earned more than £1 million on average.
Revenue Growth Stalls
PwC’s revenues for 2025 reflected the slowdown. The firm reported £6.35 billion in combined UK and Middle East revenues, a modest rise from £6.33 billion a year earlier.
- UK revenue held steady at £4.2 billion(≈ ₹44,100 crore).
- Middle East revenue stagnated at £1.98 billion(≈ ₹20,790 crore).
The muted growth mirrored a global slump in deal-making, with mergers and acquisitions at multi-year lows. In the Gulf region, geopolitical uncertainty and cautious state spending have weighed on consulting opportunities, leaving firms like PwC exposed.
A Shifting Consulting Landscape
Analysts say the PwC episode illustrates the heightened risks faced by global advisory firms in regions where political dynamics, sovereign wealth funds, and state-driven development strategies dominate the business landscape.
While PwC remains one of the Big Four giants alongside Deloitte, EY, and KPMG, its Middle East troubles reveal how quickly fortunes can change when relationships with state-backed clients sour.
As one industry observer put it: “Consulting firms no longer operate in a purely commercial space in the Gulf — success depends on navigating political ties as much as technical expertise.”
With PwC now adjusting to life without Saudi Arabia’s PIF for at least a year, the broader consulting industry will be watching closely to see whether the firm can rebound in the region or whether its rivals will seize the opening.