Accenture to cut 19,000 jobs: Here are all the details

Accenture has announced that it is cutting 2.5 percent of its workforce, which is roughly 19,000 employees. Here are all the details.


  • Accenture is cutting down 2.5 percent of its workforce.
  • Accenture is slashing 19,000 jobs globally.
  • These job cuts will most affect Accenture's non-billable corporate functions.

Image: Reuters

Accenture Plc lowered its annual revenue and profit forecasts and decided to cut about 2.5% of its workforce, or 19,000 jobs, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services. Also Read - Google details a plan to use AI responsibly: Here’s what it says

More than half of the jobs to be cut will be in its non-billable corporate functions, Accenture said on Thursday, sending its shares up 6.4 percent. Also Read - G7 countries call to have global technical standards for AI

Since late last year, the tech sector has laid off hundreds of thousands employees due to a demand downturn caused by high inflation and rising interest rates. Also Read - Meta is making some major change to WhatsApp Web: Check details

Rival Cognizant Technology Solutions last month pointed to “muted” growth in bookings, or the deals IT services firms have in the pipeline, in 2022 and forecast quarterly revenue below expectations.

IBM Corp and India’s top IT services firm Tata Consultancy Services have also flagged weakness in Europe, where the Ukraine war has affected client spending.

Accenture now expects annual revenue growth to be between eight percent and 10 percent, compared with its previous projection of an eight percent to 11 percent increase.

Earnings per share is expected in the range of $10.84 to $11.06 compared with $11.20 to $11.52 previously. The company expects to incur $1.2 billion in severance costs through fiscal 2023 and 2024.

“Companies remain focused on executing compressed transformations,” Chief Executive Julie Sweet said in a post-earnings call referring to how businesses were trying to become leaner in the turbulent economy.

A survey of more than 1,000 IT decision makers by U.S.-based Enterprise Technology Research said they plan to reduce their 2023 budget growth. The growth expectations are now 3.4 percent, down from 5.6 percent increase captured in October 2022.

“In short, the data indicates a very difficult environment ahead for consulting firms,” said Erik Bradley, chief engagement strategist at the technology market research firm.

— Reuters

  • Published Date: March 24, 2023 10:21 AM IST
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