Accenture plans to lay off 19,000 jobs 2.5% of its workforce

• Accenture plans to lay off 19,000 employees.
• Reduce its annual revenue and profit estimates.
• It now estimates annual sales growth of 8% to 10%.

Accenture, the multinational technology consulting firm, plans to lay off 19,000 employees, or 2.5% of its staff, and has reduced its annual revenue and profit estimates, becoming the latest behemoth to cut costs in the light of deteriorating global economic conditions.

Accenture stated in an SEC filing Thursday that the job cuts, more than half of which will affect individuals in non-billable corporate tasks, will take place over the next 18 months. According to the corporation, it boosted its employees by 38,000 in the fiscal year that ended in February 2023 to meet rising demand for its services and products.

“For the second quarter of fiscal 2023, attrition, excluding involuntary terminations, was 12%, down from 18% in the second quarter of fiscal 2022. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand,” Accenture wrote.

The company now estimates annual sales growth of 8% to 10% in fiscal 2023, down from 8% to 11% previously.

“Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence. There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business, particularly with regard to wage inflation and volatility in foreign currency exchange rates. In some cases, these conditions have slowed the pace and level of client spending,” the Dublin-headquartered firm added.

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