PwC & EY UK has seen 150+ Partner reductions

• PwC UK and EY UK have both trimmed their partner ranks. 
• Why? In a bid to protect profits as consulting demand slows and costs rise!
• In 2024 alone, PwC parted ways with 124 partners, while EY saw 50 partners exit and is now preparing to cut 30 more partners in early 2025.

Why drop in Big 4 Partners?

Pandemic Boom, now a slowdown

During COVID-19, companies relied heavily on consulting to manage remote work and supply chain challenges.

But now?

Inflation and rising interest rates have led companies to cut back on advisory services.

EY’s consulting revenue fell 4% in 2024, reflecting reduced corporate spending on advisory services.

Falling Partner payouts

With slower growth, partner profits have taken a hit.

Average partner profits at EY dipped 5%, with earnings shrinking to £723,000 for the fiscal year ending in Jun.

Higher tax burdens coming

From April 2025, UK employers, including PwC and EY, will face higher national insurance contributions, putting further strain on costs.

PwC UK see record Partner exits

In 2023 and 2022 combined, 103 partners left PwC’s UK arm. In those two years, it also appointed more partners than it let go, adding 225 to its most senior ranks.

In 2024 PwC UK saw 124 partners leave partly due to early retirements (a record-breaking 76 partners exited on December 31, 2024 – the largest single-day departure in its history!)

Despite these exits, PwC promoted 69 new partners in 2024, bringing the total number of active partners to 987 as of March 2025.

PwC UK new strategy

Marco Amitrano was appointed as senior partner for PwC UK and Middle East from 1 July 2024.

The high annual exit numbers come in the same year as Marco Amitrano was appointed to lead the firm’s UK and Middle East operations.

So Marco Amitrano has been shaking things up with bold, strategic moves to steer the firm through challenging times.

• Standalone AI & Tech Division: Capitalizing on the growing demand for AI services.
• Merging Divisions: Streamlining business units into six teams to boost efficiency.
• Pausing Apprenticeships: PwC has paused its “flying start” technology apprenticeship program, which recruited high school graduates since 2018.

EY UK: 30 Partner cuts coming

EY, which employs 20,000 people across the UK.

It plans to eliminate 30 partner positions in early 2025, primarily from its consulting division.

In 2024, EY had already seen 50 partners leave, and the firm is now restructuring by:

• Limiting new partner promotions.
• Transitioning some equity partners to non-equity roles to maintain balance.

EY operates with 894 equity partners who share profits and 757 non-equity partners who don’t.

The firm is shifting some equity partners to non-equity roles to maintain balance.

What’s changing across the Big 4?

Leaner leadership structures

Firms are reducing partner numbers to cut costs.

High-performing partners are frustrated with carrying underperforming colleagues who contribute less.

Pivot Toward Technology and AI

• PwC’s creation of a standalone AI and technology division signals a shift toward tech-focused growth.
• EY is also investing in digital transformation initiatives to capture emerging opportunities in AI, data analytics, and automation.

Limiting partner promotions

• With slower revenue growth, firms are being selective about new partner promotions, focusing on high-value contributors.
• PwC’s 69 partner promotions in 2024 reflect a cautious approach to leadership expansion.

Bigger picture

Increase competition

For partners at PwC and EY, the recent changes underscore the increasing competitiveness of maintaining equity positions within the Big 4.

• Higher Performance Expectations: Partners are now required to contribute more to revenue generation and profitability.
• Fewer Promotions and More Exits: As firms limit new promotions and cut senior ranks, partners must navigate a more competitive landscape to retain their positions.

Rise of mid-tier firms…

As the Big 4 tightens their belts, mid-tier firms are benefiting.

They’re attracting clients who are looking for more specialized and cost-effective services.

The consulting landscape is shifting—and it’s clear that the Big 4 are in for a bumpy ride as they adapt to a changing market.