Accenture to cut 19,000 jobs over the next 18 months
Accenture today said it is planning to cut 19,000 staff over the next 18 months, as it seeks to cut costs in the face of the global economic downturn.
The IT consultancy today told investors it plans to cut around 2.5 per cent of its entire workforce as it pushes forwards with efforts to “streamline” its operations.
Accenture’s layoffs come after the consultancy warned its profits could suffer if it is unable to ensure its prices remain competitive.
“Our profitability could materially suffer if we are unable to obtain favorable pricing for our services and solutions,” Accenture said in a filing to the US Securities and Exchanges Commission (SEC).
The consulting firm said it expects more than half of those impacted by the layoffs will be staff working in “non-billable”, back-office jobs.
Accenture, which was split off from accounting giant Arthur Andersen in 1989, currently employs more than 700,000 people in 120 countries.
The Dublin-headquartered consultancy said its cost-cutting plans will also see it reduce the amount of office space it occupies.
“During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs,” Accenture said.
The IT specialist, however, claimed it will also continue hiring new staff to support its “strategic priorities” despite making layoffs in other areas.
Accenture’s cost reduction plans come as another sign of the effects of the global economic downturn on the tech industry.
Google, Microsoft, Meta and Amazon have announced plans to lay off tens of thousands of workers in recent months in their efforts to cut costs in the face of a worsening market environment.