Accenture to lay off 19,000 employees amid worsening global economic outlook

Accenture Plc announced on Thursday, March 23, that it would cut approximately 19,000 jobs and lower its annual revenue and profit forecasts due to the worsening global economic outlook.

Over the next 18 months, these actions are anticipated to result in the departure of about 19,000 people (or 2.5 per cent of our current workforce), with more than half of these departures being made up of employees in our non-billable corporate responsibilities, the company said in a regulatory filing.

The business further explained that "we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs" and "continuing to hire, particularly to support our strategic growth priorities during the second quarter of fiscal 2023."

Furthermore, the IT services firm reduced its yearly revenue and profit forecasts due to concerns that recession-weary businesses will cut technology budgets. The business anticipates annual revenue growth from 8 per cent to 10 per cent in local currency, up from 8 per cent to 11 per cent. It expects sales in the third quarter to be between $16.1 billion and $16.7 billion.

According to the company, revenues for the third quarter of fiscal 2023 will be between $16.1 billion and $16.7 billion, up 3 per cent to 7 per cent in local currency, reflecting the company's assumption of an approximately negative 3.5 per cent foreign exchange impact compared to the third quarter of fiscal 2022.

Meanwhile, Accenture reported financial results for the second quarter of the fiscal year 2023, which concluded February 28, 2023, with revenues of $15.8 billion, a 5 per cent increase in US dollars and a 9 per cent increase in local currency over the same period last year.

For the quarter, new bookings reached a record of $22.1 billion, with consulting and managed services accounting for $10.7 and $11.4 billion, respectively.

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