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I'm sorry to hear about the upcoming IFS layoffs but it seems like Ryan's agenda is driven by increasing the bottom line. And I agree PwC2. I understand the idea of giving us a heads up but they should have given more information.
@PwC6. Because currently bonus pools are divided by market. MTMs are by market. Staffing and resource allocation is done by market. So if there is a new market organization structure it begs the question of how is this going to affect those items or is the method of allocation going to be changed. I'm thinking they won't but this would easily be a good opportunity to introduce other sweeping changes and mask it as part of the "market organization"
^I'm pretty sure it was just because they didn't want to pay bonuses.
You need a Xanax
No it's internal firm services. Admin mostly
Makes sense why they didn't pay contribution awards in December now...
New US leadership seems to have established a pattern of poor communication on major changes.. announcing cutting contribution bonuses shortly before they were to be paid out and acting as if it was was associates wanted.. now realigning markets with no discussion on how it will impact bonuses..
All I know so far is that the "Changes in our Internal Firm Services (IFS) organization" means 10% layoffs nationwide for IFS employees which will be announced beg of Feb... 😳
Depending on the market you're in @PwC 6, if you were combined with a bigger market that is bringing in more revenue, your bonus pool will likely increase but the downside is so will the people at your level that you have to split with. And your end of year ratings will be likely affected since they are currently on a bell curve. So in a smaller market, you could have had a better chance to get a 1 vs. 2 in large market, which impacts your bonus. Now you're a 2 and your year end bonus is less... make sense?!
And that's assuming that the basis of all these determinations remains the "markets" but we'll have to see what happens!
Pwc7, there's a map of the new markets in a PwC news article from Tim Ryan on Friday. Rockies is combining with SoCal, San Jose and San Francisco combine with Northwest, Texas is one market, etc..
This will have almost zero effect on any of the audit, tax or advisory staff. 70-80% of your bonus is figured by how the firm does, not so much your market or team. Fully expect CRT to be done by market teams just like in the past anyway. The real purpose of the new market groupings is to eliminate some of his administrative burden at the partner/IFS level and get some of the leaders back into market facing roles where they can make the firm money.
Gotta trim the fat at some point
what even is IFS
I know what it stands for but is it internal audit?
Oh gotcha thank
Yea no audit and tax staff have been affected. From what I've heard from managers/partners is that both practices have been doing well and it's consulting that has taken a hit. They had the layoffs in June and now admin are being laid off. Seems like it's happening often at the big 4 now
Moving admin services to Virtual hubs
I'm failing to see why I should care about the market switch as a non-partner.
Good overview. Thx. Do you think it could be worse for small markets?