Job cuts announced: PricewaterhouseCoopers eliminates positions of 60 partners and 1,500 employees in this location - read further for details
PwC, the global consulting firm, and SoftBank Group Corp., the Japanese conglomerate, are both facing challenges in their Middle East operations.
According to recent reports, PwC has reduced around 60 partners and 1,500 staff in the Middle East region due to a slowdown in demand for its services and a fallout with Saudi Arabia's sovereign wealth fund. The exact details about the specific partners at PricewaterhouseCoopers LLP who were dismissed due to the termination of the cooperation with the Saudi Arabian sovereign wealth fund are not publicly available.
In a separate development, Saudi Arabia's Public Investment Fund has banned PwC from consulting and advisory contracts for a year. This ban, coupled with the ongoing challenging environment for PwC, may have influenced SoftBank's decision to consider job cuts at its Vision Fund unit.
Meanwhile, SoftBank's Vision Fund is making significant investments in artificial intelligence, including a planned $30 billion investment in OpenAI. SoftBank has already invested roughly $10 billion in OpenAI, and the company is also involved in a $6.5 billion deal to acquire chip designer Ampere Computing, which is facing regulatory scrutiny.
The Vision Fund unit of SoftBank Group Corp. is reportedly considering a 20% job cut, potentially shedding more than 50 roles. This reduction in staff is part of years of reductions as the Vision Fund unit has shrunk in importance.
On the other hand, the average pay for partners at the UK and Middle East PwC unit remained almost flat, with partners earning an average of £865,000 in the year to June 30, slightly up from £862,000 in the prior 12 months. In 2022, average partner pay at PwC topped £1 million.
The revenues for the UK and Middle East regions were flat, with the UK region generating £4.2 billion and the Middle East region generating £1.98 billion. SoftBank Group Corp.'s total revenue for the year 2025 was £6.35 billion, a slight increase from £6.33 billion in the previous year.
A slowdown in deals has prompted consulting services companies to cut costs, and this trend seems to be affecting both PwC and SoftBank's Vision Fund unit. The reduction in staff at PwC due to the fallout with Saudi Arabia's sovereign wealth fund has not been directly linked to SoftBank's Vision Fund. However, the ongoing challenges in the Middle East may have indirectly influenced SoftBank's decisions.
In conclusion, both PwC and SoftBank Group Corp. are navigating challenging times in their Middle East operations. While PwC is dealing with a fallout with Saudi Arabia's sovereign wealth fund and a slowdown in demand for its services, SoftBank's Vision Fund unit is dealing with job cuts and regulatory scrutiny in its acquisitions. Despite these challenges, both companies are making significant investments in artificial intelligence, signalling their commitment to future growth.
Read also:
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Emerging Investment Trends in China's Ethical Finance Sector for 2025
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
