Accenture's Tough Decision: Cutting 19,000 Jobs Amid Forecast Trimming

Accenture, a global professional services company, recently announced that it would be cutting 19,000 jobs worldwide over the next year, as part of a cost-cutting measure to adapt to the changing business landscape. It has also lowered its revenue and profit projections for this year. The news came as a shocker for already struggling IT Industry. 

There are mass layoffs going on worldwide in companies of all sizes. Accenture is the latest one to join the gang. The employees who will be asked to leave are the one either on bench or part of non-billable corporate functions.

The Accenture's CEO Julie Sweet said in a statement that the company is taking all possible steps to reduce the cost in fiscal year 2024 and beyond, but at the same time, will invest in the growth of the company and its people. Accenture has recently acquired an Industrial AI company called Flutura. The latest job cut will impact 2.5% of the total workforce. 

Accenture has revised its earlier projection of 8% to 11% increase in annual revenue growth and now anticipates a narrower range of 8% to 10%. According to Accenture, the company's anticipated earnings per share for the upcoming period will be within the range of $10.84 to $11.06, as opposed to the earlier projection of $11.20 to $11.52.

Accenture layoffs news indicates the troubling times that whole IT industry is facing currently. Several of the world's leading companies, including Amazon, Meta, Google, Microsoft, Salesforce, HP, IBM, and Twitter, have recently undergone large-scale layoffs, with some still undergoing further job cuts. 

Many companies have reported muted growth and many are in negative territory. Many believe that the recent layoffs in IT industry are the result of over-hiring done by these companies during Covid-19 times when demand was very high.

The announcement of significant job cuts by Accenture and several other major companies is a stark reminder of the ongoing impact of the Covid-19 pandemic on the global economy. As businesses strive to adapt to the new realities of a post-pandemic world, tough decisions such as workforce reductions may be necessary. 

While these decisions can be difficult for affected employees and their families, companies must strike a balance between maintaining financial stability and supporting their workforce. As the situation continues to evolve, it remains to be seen how businesses will navigate the ongoing challenges of the pandemic and its impact on the job market.