PricewaterhouseCoopers is planning to halve bonuses in Switzerland as the Big Four accounting firm seeks cost cuts in response to artificial intelligence and a challenging economic environment, according to people familiar with the matter.
The reductions were announced internally during several town-hall meetings with specific teams in recent weeks, according to the people, who asked not to be identified discussing internal business. There was no written internal communication about the measures, they said.
A spokeswoman for PwC said the company doesn't comment on internal or staff matters. They added that they could not confirm or deny rumors about bonuses or other decisions.
PwC Switzerland has attributed the cuts to a challenging economy and increased use of AI for work, the people said. Consultancies around the world are grappling with slower demand for some professional services, pressure to improve profitability and the rapid adoption of new technologies.
Amid the uncertainty, firms are squeezing costs. KPMG is cutting around 200 advisory staff in the U.K., blaming low attrition rates and "market dynamics." Businesses including McKinsey & Company, Ernst & Young US and PwC US have also axed back office staff in the last 12 months as they lean on
Consulting malaise
When employees in Switzerland asked whether layoffs were planned, the company said that was not currently under consideration, the people said.
In recent decades, Zurich and Geneva have established themselves as lucrative hunting grounds for consulting firms including EY, KPMG and Deloitte. Switzerland is home to a long list of international companies which use the country for their European headquarters. This helps consulting firms to originate global mandates from companies in Switzerland.
Consulting firms also benefit from Switzerland's large pharmaceutical and financial-services sector. However, both sectors are facing headwinds. PwC lost Roche Holding AG, which ranked among its
PwC partners are now grappling with questions over strategy, including which clients to focus on and how to grapple with AI, according to the people.
The disappearance of Credit Suisse, with which PwC had a longstanding consulting relationship, has also weighed on the business. The takeover of the bank by UBS Group AG removed one of Switzerland's two major financial institutions as an independent client.
