A leading global professional services company, Accenture will sack 19,000 employees which is nearly 2.5 percent of the company’s workforce.
More than half of the layoffs would impact employees in its non-billable corporate functions. According to CNBC reports the layoff will be over a period of the next 18 months.
CNBC-TV18 shared a tweet saying, “#NewsFlash | Accenture (@Accenture) to cut 19,000 jobs over next 18 months @Shilparanipeta“
The company has reported its financial results for the second quarter of fiscal 2023 which ended February 28, 2023, with revenues of $15.8 billion, an increase of 5% in U.S. dollars and 9% in local currency over the same period last year.
Julie Sweet, Chair and CEO of Accenture said, “Our strong financial results this quarter again demonstrate that our ability to bring together industry, functional, and technology expertise as well as managed services continues to differentiate us with our clients.”
“Our record bookings reflect the confidence and trust that our clients have in us to create value and help them transform at speed. We are also taking steps to lower our costs in the fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead”, Julie Sweet added.
The company said in a statement, “During the second quarter of fiscal 2023, Accenture initiated actions to streamline operations, transform non-billable corporate functions and consolidate office space to reduce costs.”
“The company recorded $244 million in business optimization costs during the second quarter and expects to record total costs of approximately $1.5 billion through fiscal 2024”, the statement added.
Accenture currently employs nearly 738,000 people serving clients in more than 120 countries. The company has joined the layoff wave of other IT companies.
The move of layoffs is part of a larger trend of tech companies cutting jobs and slowing hiring as investors become increasingly fearful of a recession. Tech companies have either frozen the hiring process or laid off many employees.
Amazon sacked 27,000 employees in the last three months. Recently, the company announced to layoff of 9000 employees. The major companies that laid off employees include Infosys, Amazon, Google, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
So far in 2023, there have been 686 layoffs at tech companies with 190,729 people impacted (2,326 people per day). In 2022, there were 1,535 layoffs at tech companies 241,176 people were impacted.
