The technology consulting giant Accenture plans to cut 19.000 jobs, 2,5% of its workforce, and has lowered its annual revenue and profit forecasts, becoming the latest giant to cut spending in the wake of the worsening global economic situation.
The job cuts, more than half of which affect people in nonbillable corporate functions, will take place over the next 18 months, Accenture said in a filing with the SEC (PDF). The company had increased its workforce by 38.000 people in the fiscal year ending February 2023 to meet increased demand for its services and solutions, it said.
“In the second quarter of fiscal year 2023, attrition, excluding involuntary terminations, was 12%, down from 18% in the second quarter of fiscal year 2022. We assessed voluntary attrition, adjusted new hire levels, and used involuntary layoffs as a means of keeping our supply of skills and resources in balance with changes in client demand," Accenture wrote.
The company said it now expects annual revenue growth for fiscal 2023 to be between 8% and 10%, down from 8% to 11%.
“Our results of operations are affected by economic conditions, including macroeconomic conditions, the general inflationary environment, and levels of business confidence. Significant economic and geopolitical uncertainty continues to exist in many markets around the world, which has affected and may continue to affect our business, particularly with regard to wage inflation and currency exchange rate volatility. In some cases, these conditions have slowed down the pace and level of customer spending," the Dublin-based company added.
