PwC UK Faces Significant Partner Departures and Restructuring Amid Industry Slowdown

Introduction: A Challenging Year for PwC UK

2024 was a year of significant change and challenge for PwC’s UK division. The firm faced a notable decline in partner numbers, surpassing the total departures from the previous two years combined. This trend reflects broader pressures within the consulting industry, where firms like PwC, EY, and Deloitte are grappling with slowing growth and increased competition. As market conditions have become more challenging, these firms are being forced to adapt, with partner numbers and payouts taking a hit. The situation at PwC UK is a prime example of how these factors are reshaping the industry landscape.

Partner Departures and Leadership Changes

One of the most striking developments at PwC UK in 2024 was the sharp increase in partner departures. According to data from the UK’s Companies House, 124 partners left the firm in 2024, compared to 103 in the combined years of 2023 and 2022. The year ended with a dramatic exit of 76 partners on December 31, 2024, marking a stark contrast to previous years when the firm had actually appointed more partners than it lost. While PwC traditionally appoints new partners annually, the number of new appointments dropped to 69 in 2024, leaving the firm with 987 active partners as of March 13, 2025. This trend is a clear indication of the challenges PwC is facing in retaining its senior leadership amidst industry-wide pressures.

The high number of departures coincided with the appointment of Marco Amitrano as the new leader of PwC’s UK and Middle East operations in July 2024. Amitrano’s tenure has been marked by a significant overhaul of the firm’s operations, including the creation of a standalone technology and artificial intelligence unit and the merger of other business areas into six new teams. These changes are part of a broader effort to streamline operations and reduce costs in response to slowing growth. However, the firm has not publicly disclosed the reasons behind the partner departures, leaving speculation about whether the restructuring efforts have contributed to the exodus.

Restructuring and Cost-Cutting Measures

Amitrano’s leadership has brought about a series of strategic changes aimed at positioning PwC UK for long-term success. One of the most notable initiatives is the creation of a standalone technology and artificial intelligence unit, reflecting the firm’s commitment to investing in areas with high growth potential. Additionally, the merger of other business units into six new teams is intended to improve efficiency and better align the firm’s services with client needs. These changes are part of a broader strategy to adapt to the evolving consulting landscape, where firms are increasingly competing to offer specialized expertise in areas such as digital transformation and AI.

The restructuring efforts are also driven by the need to control costs in the face of an industry downturn. PwC UK, like its competitors, is feeling the impact of a slowdown in demand for consulting services, which has been exacerbated by economic uncertainty and reduced business investment. The firm’s growth rate for its combined UK and Middle East operations slowed by seven percentage points to 9% in 2024, highlighting the challenging environment in which it is operating. Amitrano’s focus on cost control is therefore crucial to maintaining profitability and competitiveness in this difficult climate.

Pausing the Hiring Program for High School Leavers

Another significant announcement from PwC UK in 2024 was the pause of its "Flying Start" apprenticeship program, which had provided opportunities for high school graduates since 2018. This program was an important part of the firm’s recruitment strategy, offering young people an alternative to university and a chance to gain valuable work experience while earning a salary. The decision to pause the program reflects the firm’s efforts to manage costs and align its workforce with current demand.

While the pause is likely a short-term measure, it has implications for PwC’s ability to attract and develop young talent in the long term. The "Flying Start" program was not only a pipeline for future employees but also a way for the firm to demonstrate its commitment to social mobility and diversity. The suspension of the program may therefore have wider repercussions for the firm’s reputation and its ability to attract top talent in the future.

Financial Implications and Industry-Wide Challenges

The financial implications of the partner departures and restructuring efforts are significant. Partners at PwC, as with other Big Four firms, typically hold equity in the business and receive a share of annual profits. The decline in partner numbers has therefore implications for the firm’s profitability and its ability to distribute profits to remaining partners. Additionally, the slowdown in growth has put pressure on partner payouts across the industry, with firms like EY, PwC, and Deloitte all reporting reduced payouts to their partners in 2024.

Looking ahead, PwC UK faces additional financial challenges, including higher taxes. From April 2025, the firm will be required to pay higher rates of national insurance contributions for its employees, increasing its tax burden. This change comes at a time when the firm is already under pressure to reduce costs, making it even more challenging to maintain profitability. The combination of these factors creates a difficult environment for PwC UK and its competitors, as they seek to balance the need for investment in growth areas with the imperative to control costs.

Conclusion: Navigating a Changing Landscape

The developments at PwC UK in 2024 highlight the challenges facing the consulting industry as a whole. The sharp increase in partner departures, restructuring efforts, and the pause in the "Flying Start" apprenticeship program are all indicative of a firm in transition, seeking to adapt to a rapidly changing business environment. While Amitrano’s leadership has brought about a renewed focus on technology and efficiency, the firm will need to navigate a complex landscape of slowing growth, increased competition, and rising costs in the years to come.

As PwC UK continues to implement its restructuring plans, it will be important to monitor how these changes impact the firm’s performance and competitiveness. The ability to retain and attract top talent, invest in high-growth areas, and manage costs will all be critical factors in determining the firm’s long-term success. For now, the focus remains on weathering the current downturn and positioning the firm for future growth.