A view of PwC office in Beijing in January. Photo: VCG

Global auditing firm PricewaterhouseCoopers (PwC) on Wednesday denied rumors that its branch in Guangzhou, South China's Guangdong Province, had shut down, noting that the company has optimized the organizational structure in accordance with market needs.

The company's response came after that some market sources alleged on Wednesday that "PwC in Guangzhou is being shut down, with all employees leaving within seven days, but its Shenzhen branch keeps normal operation." 

Some media outlets even cited a PwC employee, saying that most of the recent lay-offs at PWC were from the audit department, and, redundancies in other departments will also be cut, which belong to normal business operations of any company.

In response, PwC said that it has always valued talent and has been investing heavily in talent development for many years. The current adjustment is a difficult decision and the company is developing adequate communication with the affected employees and ensuring that the adjustment plan complies with the relevant provisions of China's labor laws.

In May, several media outlets reported that China is considering financial penalties for PwC over its role in auditing the troubled property developed Evergrande Group, which was ordered to be liquidated earlier this year.

Multiple Chinese companies, such as insurance firms China Life Insurance Company and PICC Property and Casualty Company, as well as energy giant PetroChina, and China Merchant Bank, had reportedly ended their auditing partnership with PwC.

In July, the official website of the company showed that it has appointed Li Dan, also known as Daniel Li, as the new chairman for the Asia Pacific and China area. Li has worked for PwC China area for more than 30 years, having joined it as part of the firm's first recruits in the Chinese mainland in 1993. 

He has served in navigating the complexities of IPOs, M&As, and inbound and outbound transaction for a diverse range of MNCs, POEs and SOEs, the company website said. "Li will lead PwC China in its mission of 'solving important problems and building social integrity,'" said the company.

Global Times