From Fortune Magazine:

Businesses are facing a harsh reality as layoffs sweep across the tech industry in response to the COVID-19 hiring boom. The consulting space is also feeling the effects as major industry players undergo cost-cutting measures as business slows down. The “Big Four” have announced massive layoffs in the U.K., reflecting cooling business conditions.

Amid a persisting slowdown, PwC U.K. plans to extend graduate programs to address a lack of work at the senior associate level. The consulting giant has informed close to 100 graduates that they won’t be promoted due to sluggish demand for consulting services and headcount pressures.

The decision to extend the graduate program will impact those who joined the firm’s consulting division in fall 2022. PwC has recruited over 3,500 graduates and school leavers since then, with the delay applying to 90 graduates in the consulting practice. A representative stated, “A short delay in promotion is clearly disappointing for those affected but allows us to support careers over the longer-term.”

The consulting industry has been retreating for several months, hit by the “Great Resignation” and now coping with rising costs and plummeting demand. Professional services were among the U.K.’s largest recruiters of new graduates in 2023, but consulting firms have frozen pay and cut jobs, leading to fewer job openings within consulting.

PwC U.K.’s annual report revealed that the average pay for its partners decreased, and the group’s profits were down from the previous year. Despite this, its consulting practice had grown 30%, thanks to high demand from the Middle East’s oil and energy projects.



Read more: PwC is delaying graduates’ promotions as demand, consulting hiring wanes