Recent layoff announcements at Big Four accounting, tax, and consulting firms come as the industry faces economic uncertainty and a shrinking talent pool.
The accounting profession is at a crossroads as a new class of students graduate. While recent data shows heightened interest in both undergraduate and master's degree programs, the industry faces possible disruptions like workforce reductions and emerging artificial intelligence tools.
Deloitte LLP announced in April it would lay off government consulting employees as the Trump administration slashed federal contracts. The firm said in a statement the personnel actions were based on its public-sector clients' "evolving needs," among other factors.
PwC LLP plans to cut roughly 1,500 jobs, many in its tax and assurance practices, the firm said last month, after two years of historically low levels of turnover. The firm plans to slow down its campus recruiting and will offer fewer internships for next year.
But PwC announced this week it plans to reorganize its US advisory business, doubling the number of divisions from four to eight. The move "is being approached from a position of strength," according to a statement from PwC US advisory leader Tyson Cornell.
Peter Demerjian is the director of the school of accountancy at Georgia State University. Namaan Mian is the chief operating officer at Management Consulted, a professional training and coaching organization.
Demerjian and Mian spoke with Bloomberg Tax reporter Jorja Siemons about the recent layoffs, the industry's embrace of AI, and potential impacts on the industry's next generation.
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