Accenture To Lay Off 19,000 Employees As Company's Annual Revenue And Profit Forecasts Drop

Jun, 2023 - by CMI

 The IT Company Struggles to Meet Market Expectations Amidst Global Economic Uncertainty

Global IT company, Accenture, announced on Thursday that it will be laying off 19,000 employees as part of a restructuring plan following a drop in annual revenue and profit forecasts. The layoffs, which will be mainly from the lower management level, represent around 5% of the company's global workforce.

The move comes after Accenture reported lower-than-expected earnings for the third quarter, which ended on May 31st. The company's revenue growth rate was cut down to 3-6% from the initial estimate of 6-8%, while the earnings per share guidance was also lowered from $8.50-$8.75 to $7.50-$7.70.

In a statement released on Thursday, Accenture CEO, Julie Sweet, acknowledged the challenges the company is facing amidst the global economic uncertainty caused by the ongoing COVID-19 pandemic. She explained that the layoffs are part of the company's plan to "realign investments and skill sets" to better serve clients in the "current and future market conditions."

Sweet added that the company will continue to invest in its digital and cloud services, which have shown strong growth during the pandemic. However, she also noted that the company will be reducing its focus on certain legacy businesses, which have been impacted by the pandemic.

The layoffs will mainly affect employees in the company's offices across the United States, United Kingdom, and India. Affected employees will receive severance packages and outplacement services to assist them in finding new job opportunities.

The news of the layoffs has sparked concern among Accenture employees and industry experts, who worry about the impact on the company's reputation and ability to attract and retain top talent. However, Sweet emphasized that the company remains committed to its employees and clients, stating that "we will continue to prioritize the well-being of our people while driving innovation for our clients."

Despite the challenges, Accenture remains optimistic about its future prospects. The company expects to continue investing in areas such as cybersecurity, data analytics, and artificial intelligence, which are expected to see significant growth in the coming years.