PwC's global revenue fell 2.7% to $57 billion for the fiscal year ending June 30, marking the first decline in two decades. This downturn was attributed to a challenging macro-economic environment, internal scandals, and the rise of artificial intelligence, which led the firm to cut staff and abandon a 2021 pledge to add 100,000 workers worldwide by mid-2026. Instead, PwC reduced its global workforce by 5,600 employees, pushing its headcount below 365,000.
The firm's growth lagged behind its Big Four rivals, with Deloitte reporting 4.8% growth and EY 4%. While PwC's assurance business grew 0.9% and tax revenues were up 2.8%, its advisory business, which saw strong growth in the first half of the fiscal year, experienced weaker demand due to trade wars and geopolitical uncertainty. Notably, PwC did not disclose its net income for the year, a metric whose growth had been slowing in prior years.
Regional performance varied, with revenue growth accelerating to 5.1% in the Americas but slowing to 3.7% in Europe, the Middle East, and Africa. Revenues in Asia Pacific declined for the second consecutive year, dropping 4.1%, partly due to scandals in Australia and China. PwC's UK operations also faced difficulties, with revenues increasing by only 0.4% to £6.35 billion, the slowest rate in 16 years, leading to unspecified job cuts there as well. The firm's partners in the UK, however, saw a slight increase in average distributable profit to £865,000 from £862,000.
