Accenture is going to cut 19,000 jobs
The company’s management claimed that pay inflation is at an all-time high and that they are considering pursuing structural expenses. In FY23 and FY24, Accenture will spend $1.5 billion on business optimisation expenses.The company’s management claimed that pay inflation is at an all-time high and that they are considering pursuing structural expenses. In FY23 and FY24, Accenture will spend $1.5 billion on business optimisation expenses. Accenture stated that more than half of the 19,000 people it will let go will work in non-billable corporate roles.
Accenture is cutting 19,000 positions over the next 18 months and has also dropped its revenue projection for the fiscal year 2023 at the higher end, which is a sign of the increasing stress in the IT services sector as clients cut expenditure and put more of an emphasis on cost-cutting.
Accenture has lowered its top end of projection from 11 percent to expect revenue growth of 8 to 10 percent in FY23. The fiscal year for Accenture is September through August.
With revenues of $15.81 billion and new bookings reaching a record high of $22.1 billion, an increase of 36.4 percent sequentially, the company exceeded its revenue target for the quarter. The corporation forecasts revenues of $16.1–16.7 billion for the third quarter.
Accenture employs nearly 3 lakh people in India, and its results—which were released just days before Indian IT released its Q4 financial results—provide a preview of how those of Indian IT companies are expected to do.
