PricewaterhouseCoopers cuts 1,000 jobs in e-commerce push

Management consulting firm PricewaterhouseCoopers today said it
will cut 1,000 administrative and internal support jobs as part of its plan
to shift its focus to e-commerce consulting.

The firm, which circulated a memo to its employees earlier today, said the
1,000 positions targeted will be achieved through the dismissal of about 750
employees, through a combination of voluntary attrition, and through a hiring freeze already taking place. The company employs roughly 150,000 people worldwide.

"This will free ourselves to make the kind of strategic acquisitions that
will enable us to provide our clients a broader range of professional
services with a focus on e-commerce," said Steven Silber, a spokesman for
the firm. Silber added that the firm will continue investing in technology
and training particularly in the e-commerce space.

There has been an evident shift in the services industry to focus on
Internet and e-commerce business among computer services firms and Big Five
consulting firms, like EDS, Andersen Consulting, and Ernst & Young, as the
firms begin to feel the pressure from smaller, more nimble Internet
consulting players, such as Viant, Razorfish, and Scient. EDS and Andersen
Consulting have both recently launched hefty ad campaigns to gain awareness
for their new e-commerce focus.

Silber said the job cuts will not affect any internal accountants or
consultants, and will mainly target positions in internal support
departments, including human resources, finance, marketing, and
administrative operations. While he couldn't specify which geographic areas
will be affected by the job cuts, he did say some will take place in the
United States.

Tom Rodenhauser, an industry analyst that heads ConsultingInfo.com, said
while it's evident PricewaterhouseCoopers is attempting to garner more
business from e-commerce-related consulting contracts, the job cuts really
have nothing to do with their strategic move.



"The bottom line is they're making the cuts [in expenses to boost]
partner profitability," said Rodenhauser.


Silber said the firm's cutbacks are due in part by the Coopers & Lybrand
merger that occurred more than a year ago. And while layoffs didn't immediately
follow the merger, Silber said that since then, "infrastructure cost has
grown and it's not in line with our need to address market opportunities."



Silber claims that the firm's focus on building its e-commerce practice will
also ultimately generate new job opportunities.



"E-commerce represents major opportunities for us," Silber added.
"Recruitment and retention strategy for client service positions in such
growth areas [like e-commerce] will remain aggressive."