Accenture cuts up to 900 jobs in UK as Covid-19 pandemic hits demand
Consulting firm Accenture is cutting up to 900 jobs, or 8% of its UK workforce, as the coronavirus pandemic prompted a sharp slump in demand for its advisory work.
Demand for consultants has dropped during the financial downturn caused by the pandemic, as companies have paused deals and put large transformation projects on hold.
The company told its 11,000 employees in the UK this week that about 8 percent of jobs at all levels would be cut. Redundancies will start this month and conclude by September.
Accenture spokesman said Thursday in an email, “We went into the crisis with an overcapacity of people relative to demand. The crisis has caused additional strain on the business due to lower demand and reduced national attrition.”
“In addition, we have identified the structural costs that we need to address. Between 700 and 900 jobs will be affected by the planned cuts.” Spokesman said
Companies across the UK are laying off staff in the face of slumping revenue. Bank of England Chief Economist Andy Haldane said this week that the outlook for jobs is the biggest risk to the UK economy, particularly as employee furlough programs end in August.
Accenture is based in Dublin and is listed on the New York Stock Exchange. It employs 513,000 staff in 55 countries.