Positioning and competition-wise, it sits level with the other Big 4 (accounting firms).
The practice used to be part of V&S, before adopting some independent branding for a few years. It didn't really work out, with the "Strategy" partners getting a bit sick of their pseudo-independent status. The practice mostly got used as spare resource for V&S so was dominated by corporate finance accountants and struggled to recruit and hold onto strategy consultants.
P&L-wise, it didn't manage to get off the ground before the crunch hit, so the decision was made to split Strategy, with the bulk of staff going back to V&S and the remaining career consultants moved into PIC.
The reorganisation does make some sense as it allows PwC to compete on a more even footing with the other Big 4. The new structure and capabilities-range is more consistent across the firms.