Accenture to Cut 19,000 Jobs Amid Concerns of Lower IT Spending Due to Global Economic Outlook

Accenture said more than 50 percent of the job cuts would affect staff at its non-billable corporate functions.

By Reuters | Updated: 23 March 2023 18:10 IST

Accenture to Cut 19,000 Jobs Amid Concerns of Lower IT Spending Due to Global Economic Outlook

Photo Credit: Reuters

Accenture now expects annual revenue growth to be between 8 percent and 10 percent

Highlights

Last month, rival Cognizant pointed to "muted" growth in bookings in 2022
Indeed said it will cut about 2,200 jobs or 15 percent of its workforce
Corporate America has been laying off staff at a rapid pace

Accenture on Thursday lowered its annual revenue and profit forecasts and said it would cut about 2.5 percent 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 percent before the bell.

Accenture now expects annual revenue growth to be between 8 percent and 10 percent compared to the previous projection of 8 percent to 11 percent increase.

Job Search Portal Indeed Cuts 2,200 Jobs, Says Company Is ‘Too Large’

Last month, rival Cognizant Technology Solutions pointed to "muted" growth in bookings, or the deals IT services firms have in the pipeline, in 2022 after its first-quarter revenue forecast came in below market expectations.

Accenture said it now expects earnings per share to be in the range of $10.84 to $11.06 (roughly Rs. 890 to Rs. 900) compared to $11.20 to $11.52 (roughly Rs. 920 to Rs. 940) previously.

Meanwhile, US-based job search platform Indeed said on Wednesday it will cut about 2,200 jobs, or 15 percent of its workforce, joining a host of companies rationalizing their labour force following a pandemic-fuelled hiring boom.

Amazon to Lay Off 9,000 Employees in Another Round of Job Cuts

Chief Executive Chris Hyams, who will take a 25 percent cut in base pay, said future job openings in general were at or below pre-pandemic levels and that the company was too large.

Corporate America has been laying off staff at a pace not seen since the financial crisis over a decade ago, bracing for an economic downturn triggered by aggressive rate hikes by central banks around the world.

Facebook Parent Meta to Lay Off 10,000 Employees in Second Round of Job Cuts

The newly launched Oppo Find N2 Flip is the first foldable from the company to debut in India. But does it have what it takes to compete with the Samsung Galaxy Z Flip 4? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.