Accenture Lays Off 19,000 Employees In Lieu Of Increasing The Budget

Accenture has announced the layoff of 19,000 employees to save costs, with the layoff process expected to continue over the next 18 months.

Rithika Biswas
Rithika Biswas March 24, 2023
Updated 2023/03/25 at 6:51 PM

19,000 employees are being laid off by Accenture to cut costs, but it plans to resume hiring in late 2023 as soon as layoffs are complete Accenture is the newest technology business to lay off thousands of workers. The IT business has stated that it is laying off up to 19,000 staff due to concerns about the global economy. This represents roughly 2.5% of its workforce. The good news is that Accenture will not lay off people immediately and that the process will continue for the following 18 months. 

“Over the next 18 months, such actions are estimated to result in the departure of roughly 19,000 people (or 2.5% of our existing workforce), with more than half of these departures consisting of people in our quasi-corporate services,” the business stated in a regulatory filing.

The IT firm also stated that it will keep hiring new employees until late 2023. “Although we continue to employ, particularly to support our strategic growth targets, we commenced efforts to streamline our operations and change our non-billable corporate services to decrease expenses during the second half of fiscal 2023,” it stated. 

According to the facts given by the corporation, the layoffs are indeed being done to save money. Another cause for this was excessive hiring. Accenture has previously hired new people to satisfy current and predicted future demand. As a result, the company’s personnel expanded to roughly 738,000 by February 2023, up from 699,000 in February 2022.

3 ways layoffs will impact IT jobs in 2023 | The Enterprisers Project

Also, the IT company has disclosed that it expects weaker profit and revenue numbers this year due to the economic slump. Accenture anticipates its annual revenue growth to be in the 8% to 10% range in local currency, as opposed to the 8% to 11%  range previously predicted. Accenture expects sales in the third quarter to be between $16.1 billion and $16.7 billion. 

Meta also just confirmed the layoff of 10,000 additional employees in order to save money. Earlier this year, the company fired 11,000 employees, claiming that it was doing so based on performance and that it would save money for the firm. Facebook’s parent organization also indicated that the change is due to slower growth and lesser revenue due to the economic slump.

Amazon recently announced 9,000 job layoffs, just weeks after confirming that 18,000 employees would be asked to leave the company as part of the company’s layoff process. Logitech also reduced its workforce by 300 people due to a drop in sales.


For more such updates, keep reading techinnews

Share this Article