New Delhi: Accenture has laid off more than 11,000 employees in the last three months and warned that staff unable to adapt to artificial intelligence (AI) will face further job losses. The IT consulting firm announced the cuts as part of an $865 million restructuring plan, citing slower demand for short-term consulting projects and reduced U.S. federal spending.
The company’s global workforce stood at 779,000 at the end of August, down from 791,000 in May. While Accenture did not specify the exact number of roles tied to restructuring, it disclosed severance and related costs of $615 million in the past quarter, with an additional $250 million expected in the current quarter. Chief Executive Julie Sweet told analysts that reskilling efforts are being pursued, but for some roles, the timeline is “compressed,” and retraining is not a viable option.
Revenue for the fiscal year ending August rose 7% to $69.7 billion, while net income increased 6% to $7.83 billion. However, the company forecast a more modest revenue growth of 2–5% in the coming fiscal year, attributing the slowdown partly to U.S. government spending cuts, which historically account for nearly 8% of its business.
At the same time, Accenture is accelerating its pivot to AI. Bookings for generative AI projects climbed to $5.1 billion in the last fiscal year, up from $3 billion a year earlier. The company now employs about 77,000 AI and data professionals, compared with 40,000 two years ago. Despite the current layoffs, Accenture indicated that overall headcount may expand again in the coming year as the focus shifts toward AI-driven roles.
Shares of Accenture fell 2.7% on Thursday, closing at their lowest level since November 2020, reflecting investor concerns over the near-term impact of restructuring and slowing demand.
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