Accenture Cuts 19,000 Jobs

Accenture announced it would be slashing its workforce by 2.5%, which translates to 19,000 jobs.

What’s going on:

Accenture announced it would be slashing its workforce by 2.5%, which translates to 19,000 jobs. This news follows the trend of declining global economic conditions and IT services spending.

Over half of those layoffs will be in their non-billable corporate functions. On Thursday, their shares increased 6.4% despite the unfortunate news.

Why it matters:

The tech industry as a whole has been greatly impacted, leading to hundreds of thousands of job losses caused by rising inflation and interest rates, according to CNBC.

A U.S.-based Enterprise Technology Research survey of over one thousand IT decision makers revealed that their budget growth for 2023 will be scaled back.

How it’ll impact the future:

Accenture now anticipates an annual revenue expansion of 8-10%, a shift from their initial projection of 8-11%. Additionally, $1.2 billion in severance costs are expected over the upcoming fiscal years of 2023 and 2024.