PwC Cuts Jobs in Middle East as Tensions with Saudi PIF Hit Growth

By BATV News

PricewaterhouseCoopers (PwC), one of the world’s leading professional services firms, is facing major turbulence in its Middle East operations. The firm has laid off about 60 partners and 1,500 staff across the region following a dramatic slowdown in growth, largely triggered by a ban from Saudi Arabia’s powerful Public Investment Fund (PIF).

The Ban and Its Fallout

In February 2025, the PIF imposed a year-long restriction on PwC from bidding for new advisory contracts. The sovereign wealth fund — a crucial client for PwC and other global consultancies — had previously relied on the firm for support on mega-projects, including Neom, the futuristic $500 billion city under development on Saudi Arabia’s Red Sea coast.

The rupture stemmed from reported tensions over PwC’s recruitment practices and its cautious approach to potential conflicts between audit and consulting engagements. These disagreements eventually escalated into a full ban, dealing a heavy blow to PwC’s revenue pipeline.

Slowing Growth in a Once-Booming Market

PwC’s Middle East business, owned by its UK arm, had been a growth success story, posting a 26% revenue surge in the prior year. But figures to June 2025 show expansion nearly ground to a halt, with growth at just 0.4%. Much of the slowdown was concentrated in Saudi Arabia, where government recalibrations of massive spending programs have affected international advisers.

The firm’s headcount in the region remains around 11,000 employees and 500 partners, mostly based in Saudi Arabia and the United Arab Emirates. However, the job cuts were focused on consulting roles tied to large-scale “transformational” projects that have been delayed or downsized.

Strategic Response and Leadership Changes

PwC has attempted to balance the layoffs with selective hiring in high-demand areas, promoting 62 new partners in June and continuing to recruit junior staff. Insiders say the firm is also using the crisis to refresh senior management, rotate partners, and strengthen governance in its regional business.

A leadership reshuffle is under way, with some senior figures asked to step aside as a direct result of the PIF ban. The restructuring reflects a recognition that the Middle East practice can no longer depend on double-digit growth rates.

Wider Challenges for PwC

The Middle East cuts come as PwC’s UK practice also faces job losses amid a general market slowdown. Staff numbers in Britain fell to about 33,700 in June 2025, down from 36,000 the year before.

Despite these pressures, PwC maintains ambitions to expand in the Middle East, betting that demand for auditing, tax, and advisory services will remain strong even as the region’s project pipeline undergoes recalibration.

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