Preeti Choudhary Weighs In on Big Four Layoffs and Audit Quality

Preeti Choudhary, professor of accounting and Eller Fellow, was featured in a recent Agenda article examining a wave of layoffs across the Big Four accounting firms—and what those cuts could mean for audit quality.

The article highlighted PwC’s announcement that it will cut 175 jobs from its London office, just weeks after reducing its U.S. workforce by two percent. Similar reductions have hit KPMG, Deloitte, and EY in recent months, with layoffs affecting both consulting and audit divisions.

Choudhary emphasized the importance of employee retention in maintaining audit quality. “There is a connection between retention and audit quality,” she said, noting that firms and audit committees should be thinking critically about how workforce changes could impact the services they provide.

She encouraged audit committees to ask their auditors about employee retention strategies and to assess how layoffs or restructuring might influence the audit work being done.

Choudhary also pointed to broader trends affecting the profession: rising salaries, evolving technology like AI, and increasing demand for purpose-driven work—particularly in areas like climate assurance—may be improving retention among younger professionals. “It’s possible that that’s led to higher retention now,” she noted.

Still, economic pressures remain a concern. “Across all industries, we’ve seen so many job losses and layoffs over the last two years. It’s expected to continue, and maybe worsen,” Choudhary said.

As audit firms face industry-wide disruption, Choudhary cautioned that these layoffs may offer only temporary relief in the ongoing talent shortage. “It might offset the shortage for some time,” she said, “but we still don’t know what the future’s going to look like.”