The Dublin-based Irish-American company reported a 5% increase in revenue and better-than-expected earnings for the quarter and announced it will continue to hire
Accenture cuts 19,000 jobs, equal to 2.5% of its workforce, in what is the heaviest cut in the consulting sector, where companies are grappling with rising costs and uncertain economic prospects. The layoffs will cost the company about $1.5 billion in severance and “consolidate office space” expenses. And they are an “offensive” move to ensure, explain the company’s top management, that Accenture maintains its long-term profitability targets in a context of high inflation. The reductions will take place over an 18-month time frame although half of the 19,000 employees to be cut will leave by the end of August.
The company will continue to hire staff
The Irish-American company, based in Dublin, however ensures that it will continue to hire personnel “above all to support the growth of its strategic priorities”. The accompanying announcement of the cuts caused the stock to fly and the results of the last quarter, during which it recorded a 5% increase in revenues to 15.8 billion. In Europe, revenues rose 6% to $5.3 billion (+12% in local currencies) “thanks to the banking sector, capital markets, and public services. Specifically, growth is led by Italy, Germany and France “said Accenture CEO Julie Sweet. For the third quarter of fiscal 2023, the consulting giant estimates revenues in a range between 16.1 and 16.7 billion dollars. With Accenture’s cuts, the list of consulting firms that have reviewed their workforce in light of the greater uncertainty of the economy grows longer. McKinsey has already announced it will cut 2,000 jobs, while KPMG is preparing to cut 700 jobs in the US and 200 in Australia.