PwC Shuts Down Operations in Multiple Countries Amid Global Scandals and Strategic Overhaul
PwC Shuts Down Operations in Multiple Countries Amid Global Scandals and Strategic Overhaul
PwC has shut down operations in over a dozen countries considered too small, high-risk, or unprofitable, according to the Financial Times. This strategic move aims to avoid further reputational damage following a series of global scandals. Sources cited by the FT revealed growing tensions between PwC’s global leadership and local partners, with some local leaders claiming they lost over a third of their business after being pressured to drop high-risk clients.
The firm has seen a decline in clients and workforce reductions since last year. While PwC declined to comment to the FT, it also did not respond to Reuters outside business hours.
As part of a broader strategic review, PwC recently severed ties with its firms in Sub-Saharan Francophone Africa. In China, the company’s mainland unit received a six-month suspension and a $62 million fine over audit failures related to the $78 billion fraud by property giant China Evergrande.
In the UK, the Financial Reporting Council fined PwC £4.5 million ($5.96 million) over lapses in its 2019 audit of Wyelands Bank. The firm is also in talks with Saudi Arabia to repair ties after the suspension of dealings with its $925 billion sovereign wealth fund.