PwC has shut down operations in over a dozen countries, citing issues like small markets, risk, and profitability. This move is part of the Big Four accounting firm’s effort to prevent further scandals, the Financial Times reported on Wednesday.
The closures followed growing tensions with local partners, who faced pressure from PwC’s global leadership to sever ties with high-risk clients. According to sources, local leaders saw a significant loss of business, with more than a third of their clients disappearing in recent years.
The company has experienced a significant decline in clientele and layoffs since last year. Despite the report, PwC declined to comment to the Financial Times and did not respond to Reuters’ inquiry outside business hours.
In recent months, PwC has severed ties with its Sub-Saharan Francophone Africa firms following a strategic review. Meanwhile, its mainland China unit faced a six-month suspension and a hefty $62 million fine for audit failures linked to the $78 billion fraud at property developer China Evergrande.
Additionally, the UK’s Financial Reporting Council imposed a fine of £4.5 million ($5.96 million) on PwC over its audit of Wyelands Bank’s 2019 financials.
PwC is also working to restore relations with Saudi Arabia after the kingdom suspended activities involving its sovereign wealth fund and the firm’s auditing services.
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