PwC UK revenues slide for first time in more than a decade

PwC UK’s revenues fell last year for the first time in at least a decade as it was hit by a prolonged slump in its Middle East consulting business.

PwC said on Wednesday that total revenue for the UK group, which includes operations in the Middle East, decreased by 3 per cent to £6.2 billion (€7.2 billion) in the 12 months to June.

Revenues in the Big Four firm’s Middle East business contracted 15 per cent to £1.7 billion, with the fall outweighing a 2 per cent increase in sales by its larger UK-based operations.

Despite the fall in revenues, pay for partners rose to an average of £935,000 as the firm reduced staff numbers and cut costs.

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Across the group, the number of staff was slashed by more than 4,000, almost 12 per cent of the total headcount. Spending on salaries fell by £164 million, a 6 per cent drop.

It is the second year of falling sales in PwC’s Middle East business, which has been hit by a slowdown in lucrative Saudi Arabian consulting projects, previously the engine for explosive growth at the firm.

PwC described it as a “challenging year [for the Middle East] ... reflecting the impact of regional conflict, wider market disruption and currency movements”.

Global professional services firms are grappling with a sector-wide slowdown and the rapid development of AI, which threatens their business models.

Even before the fall in revenues in its most recent financial year, PwC’s revenues had flatlined in 2024-25, rising just 0.4 per cent across its UK and Middle East operations. Sales had surged 26 per cent the previous year, while growth over the previous three years had hovered between 9 per cent and 16 per cent annually, as the firm benefited from a post-pandemic surge in demand for consultants and rapid growth in the Middle East.