Accenture Layoffs 2023: There seems to be no end in sight to layoff saga. Accenture Plc said on Thursday said that it would cut about 19,000 jobs, as per news agency Reuters.
Moreover, Accenture Plc lowered its annual revenue and profit projections
The decision is the latest sign that the worsening global economic outlook was sapping corporate spending on IT services.
The company also trimmed its annual revenue growth and profit forecasts on Thursday, amid worries that recession-wary enterprises will cut technology budgets.
The company now expects annual revenue growth to be in the range of 8% to 10% in local currency, compared to 8% to 11% expected previously, the Reuters report added.
Global IT services firm Accenture, which has a large presence in India, on Thursday announced to lay off nearly 19,000 employees amid the challenging global macro-economic conditions and slow revenue growth, an IANS report said.
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 company said its revenues were $15.8 billion, an increase of 5 per cent in US dollars. The new bookings were at $22.1 billion, a 13 per cent increase.
Delivering its quarterly results for the second quarter of fiscal 2023, the company also reduced its annual revenue growth and profit forecasts.
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.
“Accenture estimates $1.2 billion for severance and $300 million for consolidation of office space, with approximately $800 million expected in fiscal 2023 and $700 million in fiscal 2024,” said the company.
“We are also taking steps to lower our costs in fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead,” Julie Sweet, Chair and CEO, Accenture, said in a statement.
