Accenture to layoff 19,000 employees as job scenario worsens

Accenture Plc on Thursday lowered its annual revenue and profit forecasts and said it would cut about 2.5% of workforce, or 19,000 jobs, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services. More than half of the layoffs will affect staff at its non-billable corporate functions, the company said, sending its shares up more than 4% before the bell.

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.Accenture announced that its revenues saw an increase of 5 per cent at $15.8 billion, while its new bookings jumped 13 per cent to $22.1 billion during the quarter.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 registered $244 million in business optimisation costs during the second quarter.The company said that it expects to record total costs of approximately $1.5 billion through fiscal 2024."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.