Report: Accenture announces 19,900 job cuts to optimize operations

Consultancy firm Accenture said it plans to slash 19,000 jobs worldwide.

File photo: Accenture logo

Accenture cuts down workforce

The Irish-American company said the number of jobs to be cut is 2.5 percent of its workforce.

More than half of the jobs covered are from the back-office, Accenture said. This reduction in workforce will happen over the next 18 months, it noted.

Some USD 1.2 billion (around PHP 70.3 billion) will be allocated for severance, while another USD 300 million (around PHP 16 billion) will be for consolidation of office space, Accenture said.

Accenture has over 738,000 employees worldwide, it said in a filing. While it continues to hire, the company had "initiated actions to streamline [its] operations and transform our non-billable corporate functions to reduce costs.

For 2023, Accenture downgraded its revenue growth projection to between 8 percent to 10 percent from previously between 8 percent to 11 percent.

Its rivals are also trying to cut their costs like KPMG announcing the slashing of almost 2 percent of its US workforce as it anticipated weakening client demand, CNN cited a Financial Times report.

A Bloomberg report also said that McKinsey could cut as much as 2,000 non-consulting staff in one of its biggest rounds of layoffs ever.

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Via: CNN