(This July 16 story has been corrected to fix the revenue year to 2022, not last year, in paragraph 16)

PricewaterhouseCoopers (PwC) is considering slashing up to half its financial services auditing staff in China, two people with knowledge of the matter said, as a regulatory investigation and an exodus of clients darken business prospects.

The move follows Chinese regulators’ scrutiny of PwC this year for its role as the auditor of troubled property giant China Evergrande Group (3333.HK), opens new tab, which, in turn, triggered the exit of some clients.