
Written By Divya
Edited By: Divya | Published By: Divya | Published: Sep 26, 2025, 07:55 PM (IST)
Accenture has announced a major round of layoffs, with about 11,000 jobs cut as part of its restructuring plan. The move comes at a time when the IT services sector is facing slower growth, despite ongoing investments in AI and cloud. Also Read: Salesforce Layoffs 2025: AI Cuts 4000 Jobs, Here's What CEO Marc Benioff Says
During the September 25 earnings call, Accenture CEO Julie Sweet explained that the company is letting go of employees whose skills don’t match the company’s future needs. “We’re exiting, on a compressed timeline, people where re-skilling is not a viable path,” she said. The company is running what it calls a business optimisation program. This includes two main steps: Also Read: Oracle Layoffs: Over 100 Cloud Jobs Cut Amid Rising AI Costs
Accenture expects to spend about $865 million over six months on this program, covering both severance payouts and asset write-offs. Also Read: AI Reshapes Hiring! 1300 Job Cuts Expected At Glassdoor And Indeed
While many reports suggest that AI directly led to these layoffs, the picture is a bit more complex. The company has been doubling down on AI-driven services, training staff in areas like agentic AI to meet client demand. However, roles where employees couldn’t be reskilled quickly enough are being phased out.
So, while AI is opening new opportunities, it’s also accelerating the need for specific skills-leaving behind those who don’t match the new requirements.
Even with the cuts, Accenture says it will continue hiring and reskilling in key areas. In fact, headcount in the U.S. and Europe is still expected to grow during FY26.
Accenture isn’t alone in making these moves. India’s Tata Consultancy Services (TCS) has already cut more than 12,000 jobs this year, also citing skill mismatches and weaker client demand.
The broader picture is clear: as AI adoption grows, the demand for newer skills rises. And for IT giants, restructuring appears to be the new normal.