Accenture, the technology consultancy giant, has announced plans to cut 19,000 jobs, which accounts for 2.5% of its global workforce. The company also lowered its revenue and profit forecasts for the year, following a decline in global economic conditions. The job cuts, which will affect over half of those in non-billable corporate functions, will take place within the next 18 months, as per the company’s filing to the Securities and Exchange Commission (SEC).
Accenture had hired 38,000 new employees in the year leading up to February 2023, to meet increased demand for its services and solutions. It further mentioned in its filing that it evaluates voluntary attrition, adjusts new hiring levels, and utilizes involuntary terminations to maintain the balance of its supply of skills and resources with changes in client demand.
Due to economic conditions such as macroeconomic conditions, the overall inflationary environment, and levels of business confidence, Accenture now expects annual revenue growth for the fiscal year 2023 to be between 8% to 10%, down from its earlier estimate of 8% to 11%. The company also cited geopolitical and economic uncertainty in many markets worldwide, which has had a significant impact on its business, particularly with regards to wage inflation and volatility in foreign currency exchange rates. These conditions have, in some cases, slowed the pace and level of client spending, according to the Dublin-headquartered firm.
Accenture is the latest company to announce job cuts amid the downturn in global economic conditions. The firm’s cost-cutting measures demonstrate the company’s intention to manage its workforce more efficiently, while maintaining its competitiveness in the market. Accenture has been hiring more employees to meet increased demand, and the job cuts may be viewed as a necessary adjustment to bring supply in line with demand.