Accenture

Accenture has today lowered its annual revenue and profit forecasts and said it would cut about 2.5% of workforce, or 19000 jobs, the latest sign that the ...

said Erik Bradley, chief engagement strategist at the technology market research firm. Accenture now expects annual revenue growth to be between 8% and 10%, compared with its previous projection of a 8% to 11% increase. More than half of the 19,000 jobs to be cut will be in its non-billable corporate functions, Accenture said.

Consulting firm to slash jobs and cut office space in the next 18 months.

It said it had already incurred $244 million in “business optimisation costs” in the three months to February. Accenture said it estimated that about $800 million of cost-cutting expenses would be incurred by the end of August with a further $700 million in the following 12 months. It has trimmed its estimated revenue growth for the financial year that ends in August from 8-11 per cent to 8-10 per cent. Operating income dropped 5.8 per cent to $1.9 billion in the quarter. More than half of the cuts are expected to affect staff who work in corporate functions but serve clients directly, the company said. McKinsey will make up to 2,000 of its 45,000 people redundant.

Consulting firm Accenture has revealed it is axing around 19,000 jobs across its worldwide workforce over the next 18 months.

The job losses adds to a wider cull across the corporate and technology sectors, with Amazon and Facebook owner Meta recently announcing more hefty cuts. The group said: “While we continue to hire, especially to support our strategic growth priorities, during the second quarter of fiscal 2023 we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs.” The company, which has three offices in Dublin, declined to provide a breakdown of cuts per country.

Accenture lowered its annual revenue and profit forecasts after announcing it would be cutting about 2.5% of its workforce. The global consultancy firm ...

Rival Cognizant Technology Solutions last month pointed to "muted" growth in bookings, or the deals IT services firms have in the pipeline, in 2022 and forecast quarterly revenue below expectations. With high inflation continuing to curb demand, Accenture lowered its annual revenue and profit forecast, with the company now expecting annual revenue growth to be between 8% and 10%, compared with its previous projection of an 8% to 11% increase. The global consultancy firm employs over 6,500 employees across Ireland and in 2021, announced plans to create 500 new jobs in the next three years, the majority of which would be based in Cork and the wider Munster area.

The US-owned consultancy's move comes as the tech sector faces a downturn in demand amid high inflation and rising interest rates.

"Over the next 18 months, these actions are expected to result in the departure of approximately 19,000 people (or 2.5% of our current workforce)." It is the latest in a string of job losses in the corporate and tech sectors following a fall in demand amid high inflation and rising interest rates, with [Amazon](https://news.sky.com/story/amazon-to-cut-9-000-jobs-in-its-cloud-services-advertising-and-twitch-units-12838936), Facebook owner [Meta](https://news.sky.com/story/facebook-and-instagram-owner-meta-to-lay-off-another-10-000-staff-12833642), and [Just Eat](https://news.sky.com/story/just-eat-to-axe-around-1-700-delivery-worker-jobs-12839509) among those recently announcing cuts. [cutting between 700 and 900 jobs in the UK](https://news.sky.com/story/coronavirus-accenture-cuts-up-to-900-uk-jobs-due-to-additional-strain-12019791) back in 2020, as it blamed "additional strain" on the business caused by the coronavirus pandemic. Accenture is to cut 19,000 jobs worldwide - including in the UK - after lowering its annual revenue and profit forecasts. The US-owned consultancy's move comes as the tech sector faces a downturn in demand amid high inflation and rising interest rates.

Consulting firm to slash jobs and cut office space in the next 18 months.

It said it had already incurred $244 million in “business optimisation costs” in the three months to February. Accenture said it estimated that about $800 million of cost-cutting expenses would be incurred by the end of August with a further $700 million in the following 12 months. It has trimmed its estimated revenue growth for the financial year that ends in August from 8-11 per cent to 8-10 per cent. Operating income dropped 5.8 per cent to $1.9 billion in the quarter. More than half of the cuts are expected to affect staff who work in corporate functions but serve clients directly, the company said. That 400-job target means Accenture’s 6,500-strong Irish workforce will be more dramatically affected than colleagues in other countries, contrary to the trend of recent redundancies among multinationals.

Outsourcing giant Accenture said it will cut 19000 jobs worldwide, around 2.5pc of its total employee numbers, in the latest sign of a worsening global ...

“It is becoming increasingly likely that HR tech revenue will decline in 2023 and potentially again in 2024. “It is clear the job market will continue to cool after the recent post-Covid boom,” he said, announcing cuts at the jobsite firm that could affect around 200 of the company’s 1,500 staff in Ireland. An Accenture spokesperson said: “After a careful review of our business operations, we can confirm that we are going into collective employee consultation for a proposed redundancy programme that is anticipated to affect approximately 400 of our people in Ireland.”

Accenture is erasing the jobs of 19,000 employees - with in-house IT workers confirmed on the front line - after it trimmed revenue projections for the rest ...

[21,000 staff over two rounds](https://www.theregister.com/2023/03/14/meta_10000_jobs_cut/), and [Amazon, which is expunging 18,000](https://www.theregister.com/2023/03/20/amazon_9000_layoffs/). [513 tech companies have made redundant 150,000 employees](https://www.theregister.com/2023/03/22/skills_shortage_shadows_it_departments/). In the case of Accenture, for example, it has grown staff numbers by 30 percent since the start of June 2021, adding some 170,000 people. A Stanford Graduate School of Business boffin [last month said](https://www.businessinsider.com/stanford-professor-mass-layoffs-caused-by-social-contagion-companies-imitating-2023-2?r=US&IR=T) he believes this is just copycat behavior rather than genuine fear of a recession, which now seems less likely to be deep should it happen. Google is laying off [12,000](https://www.theregister.com/2023/03/20/dont_be_evil_a_gaggle/) and [Microsoft some 10,000](https://www.theregister.com/2023/01/18/microsoft_job_cuts/). The real reason for the caution centers on Accenture lowering forecasts for the remainder of its financial year, with revenue expected to grow between 8 and 10 percent rather than 8 and 11 percent, and operating margin to be in the range of 14.1-14.7 percent instead of 15.3-15.5 percent. [Don't Be Evil, a gaggle of Googlers tell CEO Pichai amid mega layoffs](https://www.theregister.com/2023/03/20/dont_be_evil_a_gaggle/) [Europe, America fear Twitter job cuts mean it can't protect users](https://www.theregister.com/2023/03/08/eu_us_regulators_concerned_twitter/) [BT opens 'voluntary job leavers' scheme for merging Enterprise and Global units](https://www.theregister.com/2023/03/03/bt_business_voluntary_redundancy/) [Salesforce under investor pressure to dump more staff](https://www.theregister.com/2023/02/27/salesforce_job_losses_not_over/) [Heads to roll at Lenovo amid 'severe downturn' in PC sales](https://www.theregister.com/2023/02/17/lenovo_q3/) Almost half of the axed employees will be shown the door by Accenture by the end of the current financial year, McClure added on the earnings call. McClure said the business is initiating “business optimization actions” to “reduce costs” for fiscal 2024, and it expects to book in $1.2 billion in severance and some $300 million for “consolidation of office space.” The job cuts come despite Accenture, one of the largest cloud resellers on the planet, reporting $15.8 billion in revenue for its latest quarter, up 5 percent year-on-year, and an operating profit of $1.946 billion, albeit down against the $2.06 billion filed a year earlier. “These actions are expected to impact roughly 2.5 percent of 19,000 of our current workforce, of which over half are non-billable corporate functions and include over 800 of our more than 10,000 leaders.” Accenture is erasing the jobs of 19,000 employees - with in-house IT workers confirmed on the front line - after it trimmed revenue projections for the rest of its current fiscal 2023.