PwC Shuts Offices in Over 12 Countries Amid Scandals and Strategic Restructuring

PwC Closes Offices in Over a Dozen Countries Citing Risk, Scandals, and Profitability Issues

Global accounting powerhouse PwC has shut down its operations in more than a dozen countries after a strategic reassessment of markets deemed too small, unprofitable, or high-risk, according to a report by the Financial Times.

The closures come amid ongoing fallout from recent scandals and regulatory penalties that have hit the firm’s global reputation. The decision follows growing tensions between PwC’s global leadership and local partners, with insiders revealing to the FT that regional heads were forced to drop high-risk clients, leading to a loss of more than one-third of their business in recent years.

Strategic Cuts and Global Pressure

While PwC has not officially commented on the report, it previously acknowledged terminating its ties with Sub-Saharan Francophone Africa offices as part of a broader strategic review.

The firm’s moves appear to be part of a global clean-up effort following a series of regulatory and audit failures, which have triggered client exits, layoffs, and legal troubles in multiple jurisdictions.

Mounting Legal and Regulatory Heat

In recent months, PwC has been:

• Fined $62 million in China and had its local operations suspended for six months, following audit lapses tied to the $78 billion China Evergrande fraud.
• Fined £4.5 million ($5.96 million) by the UK’s Financial Reporting Council over the audit of Wyelands Bank for the year 2019.
• Struggling to repair ties with Saudi Arabia, after the kingdom’s $925 billion sovereign wealth fund froze relations with PwC.

Looking Ahead

The closures mark a significant shift in how global accounting firms manage regional risk and operational exposure. As PwC works to restore global confidence and prevent future reputational damage, analysts suggest that this wave of shutdowns could trigger similar assessments across other Big Four firms.