PricewaterhouseCoopers LLP (PwC) has reportedly initiated a significant reduction in its workforce across its China operations, following a substantial loss of corporate clients. The firm is also bracing for a possible record penalty from Chinese regulators.

"In light of changes to the external environment, we are making some adjustments to better optimize our organizational structure to align with market demand," a PwC spokesperson said, according to the report.

The spokesperson also acknowledged that these changes are a difficult decision and that the firm is ensuring compliance with all relevant labor laws in China.

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These layoffs come in the wake of PwC losing more than 30 publicly listed clients in mainland China, many of which dropped the firm as their auditor following its scrutiny for its role in an alleged accounting fraud at property developer China Evergrande Group.

PwC did not immediately respond to Benzinga's request for comment.

These layoffs also reflect broader trends in the Chinese tech industry, where workers face intense pressure and job insecurity. A report in June revealed that Chinese tech workers are often subjected to grueling work conditions amid slow company growth and widespread layoffs.

Despite these challenges, PwC has been making significant strides in the AI space, becoming the largest customer of OpenAI‘s ChatGPT Enterprise and rolling out the product to its employees.

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Photo courtesy: Wikimedia

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote