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Accenture announces massive 19,000 layoffs as IT spending slows

Accenture will lay off around 19,000 employees, or 2.5 percent of its workforce, over the next 18 months.

The reductions come as the professional services firm strives to cut spending and streamline operations amid declining IT spending.

The company said most people affected would be in non-billable corporate jobs. 

Read More: Indeed announces 2,200 layoffs that will hit most teams

Despite making the massive cuts, Accenture said it is still looking for roles to support “strategic growth priorities.” 

The company expects its business-optimization strategy will cost around $1.5 billion, largely due to employee severance pay for the rest of this fiscal year and 2024.

CFO KC McClure said in a recent call with analysts the firm hired 28,000 people in the last two quarters, with a current headcount of 738,000.

Read More: Amazon will axe another 9,000 jobs in second wave of cuts

The company declined to comment on the layoffs beyond what was disclosed in a Securities and Exchange Commission filing.

Chief Executive Julie Sweet said Accenture had “identified an opportunity to go after more structural costs.”

She added that the company was grappling with the challenge of “compounding wage inflation” through pricing, cost efficiencies, and digitizing.

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Layoffs at the IT consulting firm have contributed to a spate of job losses in recent months.

The uncertainty about high interest rates, ongoing inflation, and other economic challenges have propelled companies across various sectors to find ways to cut costs.

With the tech industry suffering the most, major players, including Amazon, Alphabet, and Meta, have announced sweeping cuts.

Source: The Wall Street Journal

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