IT giant Accenture announced on Thursday that it would cut about 19,000 jobs, which represents 2.5 per cent of its workforce. The company announced that more than half of the layoffs would impact employees in its non-billable corporate functions.
“While we continue to hire, especially to support our strategic growth priorities, during the second quarter of fiscal 2023, we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs. Over the next 18 months, these actions are expected to result in the departure of approximately 19,000 people (or 2.5% of our current workforce), and we expect over half of these departures will consist of people in our non-billable corporate functions,” the company said in an SEC filing.
They added that they have set aside $1.2 billion for severance of the employees who will be let go.
The IT major also lowered its annual revenue and profit projections. The IT company now expects its annual revenue growth to be in the range of 8 per cent to 10 per cent in local currency, compared to 8 per cent to 11 per cent expected previously. The company forecast current-quarter revenue in the range of $16.1 billion and $16.7 billion.