Accenture Announces Global Layoff of 19,000 Employees Due to Economic Uncertainty

Accenture, a Dublin-based tech company that specializes in providing software solutions to enterprise customers, has announced its plan to lay off over 19,000 employees globally due to uncertain macroeconomic conditions. While this number is only 2.5% of the company's global workforce, it is significantly larger than the layoffs at other major tech companies, such as Google (nearly 12,000 workers), Twitter (4,000 workers), and Microsoft (10,000 employees).


    Image: reuters

It remains unclear how this decision will affect workers in India, where approximately 40% of the company's global workforce operates. The layoff process is expected to take 18 months to complete, according to a regulatory filing.

The company's decision to lay off employees is a result of actions initiated during the second quarter of fiscal 2023 to streamline operations and reduce costs. The layoffs will mainly impact "non-billable" corporate functions.

The regulatory filing also highlights the potential legal, reputational, and financial risks that Accenture faces from any failure to protect client and/or Accenture data from security incidents or cyberattacks. The markets in which they operate are highly competitive, and they might not be able to compete effectively. If they are unable to manage the organizational challenges associated with their size, they might be unable to achieve their business objectives. The results of their operations are also affected by economic conditions, including macroeconomic conditions, the overall inflationary environment, and levels of business confidence.

Despite these challenges, Accenture reported growth in revenue, earning $15.8 billion, representing a 5% growth in USD and 9% growth in local currency. However, the company now expects annual revenue growth to be between 8% and 10% compared to the previous projection of an 8% to 11% increase.