Irish-American tech company, Accenture is making plans of cutting off 19,000 jobs which amounts to 2.5% of the tech giant’s workforce.
Also, the tech company has reduced its annual revenue and company budgets, due to the current breakdown in the economy.
In an SEC filing (PDF) made available by Accenture on Thursday, the company disclosed that the cut off will affect staff in the non-bailable corporate functions, taking effect in the next 18 months from now.
In the SEC filing (PDF), Accenture wrote: “For the second quarter of fiscal 2023, attrition, excluding involuntary terminations, was 12%, down from 18% in the second quarter of fiscal 2022. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.”
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It will be recalled that in the financial year of Accenture which ended February 2023, Accenture had increased its staff by 38,000, with the aim of catering for the increasing demands of users in the services of the tech company.
Meanwhile, with plans made to cut off 2.5% of the company’s workforce, Accenture’s annual revenue growth for 2023 financial year is expected to be between 8% to 10%, away from the 8% to 11%.
Speaking on how the economic conditions have affected the company, Accenture added that “Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence. There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business, particularly with regard to wage inflation and volatility in foreign currency exchange rates. In some cases, these conditions have slowed the pace and level of client spending.”
