PwC has initiated significant workforce reductions across its Middle East operations, impacting around 60 partners and 1,500 staff members. This move comes in the wake of a prolonged ban imposed by Saudi Arabia's Public Investment Fund (PIF) on new advisory contracts, which has severely affected the firm's revenue projections for both the current and upcoming fiscal years. The majority of these job eliminations are concentrated within consulting roles, particularly those focused on 'transformational' initiatives. This strategic realignment also involves a leadership reshuffle, aiming to mitigate the financial consequences and navigate the evolving market landscape in the region.
The downsizing process, which commenced in February 2025, was a direct consequence of the year-long prohibition by Saudi Arabia's Public Investment Fund (PIF) on awarding new advisory contracts to PwC. This ban has had a substantial impact on PwC's business outlook within the Middle East, compelling the firm to reassess its operational strategies and staffing requirements. The PIF's decision stemmed from reported 'friction and angst' regarding PwC's perceived prioritization of consulting contracts over its auditing responsibilities, and an attempt to recruit the chief internal audit officer for Neom, one of PIF's major development projects.
In response to the anticipated 'large' revenue deficit, PwC has implemented a regional leadership restructuring. Laura Hinton, currently the managing partner of PwC UK, is slated to co-lead the Middle East business alongside Hani Ashkar, the incumbent senior partner, starting in October 2025. It is expected that Hinton will assume the sole senior partner role after a one-year transition period, a detail communicated to staff via an internal memo from PwC UK boss Marco Amitrano. This leadership change is intended to steer the firm through its current challenges and reposition it for future growth.
The bulk of the job cuts have specifically targeted consulting positions, especially those involved in 'transformational' projects. Historically, PwC served as a key consultant for various major PIF initiatives, including the ambitious Neom development. The firm's deep involvement in such high-profile projects highlights the extent of the impact of the PIF ban on its consulting revenue stream. Despite these reductions, PwC's overall headcount in the Middle East has remained relatively stable due to continuous recruitment in other areas experiencing strong client demand, indicating a strategic shift in resource allocation.
As of the most recent financial year, PwC's Middle East operations comprised approximately 500 partners and 11,000 staff, with significant presences in the United Arab Emirates and Saudi Arabia. The firm continued to promote new partners, with 62 individuals being elevated in June, and remains actively engaged in hiring lower-level staff. These actions underscore PwC's enduring ambition for growth in the Middle East, even as it navigates the current economic and regulatory hurdles. The firm's strategy appears to be one of cautious optimism, adapting its workforce while seeking new opportunities for expansion in a dynamic market.
PwC's recent actions in the Middle East, characterized by substantial job cuts and a leadership overhaul, reflect the firm's strategic response to a significant revenue challenge posed by Saudi Arabia's Public Investment Fund. Despite these immediate adjustments, the firm maintains a long-term commitment to the region, evident in its ongoing recruitment efforts and planned leadership succession, signaling an intent to adapt and thrive amidst evolving market dynamics.