IT major Accenture be slash 19,000 jobs across its global operations in restructuring move
Accenture, a global IT services firm, has announced its plans to cut around 19,000 jobs worldwide, which is around 5% of its total workforce, as part of its restructuring efforts. The job cuts will be made in different areas of the company, including consulting, strategy, and technology divisions.
The restructuring move is aimed at enabling the company to focus more on cloud and digital services, which have seen a significant rise in demand due to the pandemic-induced remote working trend. The move by Accenture is not a surprising one, as many companies are undergoing restructuring and cost-cutting measures due to the ongoing pandemic. The company had previously announced in July 2021 that it would be investing $3 billion over the next three years to boost its cloud capabilities and enhance its client services. The restructuring plan is part of that investment strategy.
According to Accenture CEO, Julie Sweet, the company is aiming to achieve a “leaner operating model” that can help it “capture growth opportunities.” She stated that the company is shifting its focus towards growth areas, including digital, cloud, and security services, which have seen increased demand due to the pandemic. Sweet added that the restructuring would help the company to “drive sustainable, profitable growth for our clients and shareholders. “The job cuts at Accenture will be spread across different regions, with around 10,000 jobs set to be cut in the United States and around 6,000 in India, which is the company’s largest market.
Other regions that will be affected include the United Kingdom, Australia, and Canada. The job cuts will be carried out over the next few months, with most of them expected to be completed by the end of November. The restructuring move by Accenture has also led to a trimming of the company’s revenue forecasts for the current financial year. The company now expects its revenue growth to be between 10.5% and 11% for the year, down from its earlier forecast of 11% to 13%. The company has attributed this revision to the delays in some of its projects due to the pandemic.
The announcement of job cuts at Accenture has been met with mixed reactions from various stakeholders. While some experts have welcomed the move as a necessary step to adapt to changing market conditions, others have expressed concerns about the impact on affected employees and their families. The company has stated that it will provide support to the impacted employees through severance packages, counseling, and job placement assistance. The move by Accenture is a reminder of the challenges faced by companies in the IT services sector due to the pandemic-induced economic slowdown. While the sector has seen growth in areas such as cloud and digital services, the overall demand has been impacted due to the disruptions caused by the pandemic. Many companies in the sector are now focusing on cost-cutting measures and restructuring efforts to adapt to the changing market conditions.