On Thursday, March 23, Accenture declared it would cut 19,000 jobs, accompanied by lower revenue and profit projections.
What we know so far
Accenture, a major player in the IT industry, revealed that it would eliminate 19,000 positions or 2.5% of its workforce. The corporation said that more than half of the layoffs would affect workers in its corporate functions that are not billable.
As per Business Today reports, Accenture had allocated $1.2 billion for the severance of the workers who would be laid off. The IT major has reduced its forecasts for yearly sales and earnings. The firm now predicts its annual revenue growth to be 8 percent to 10 percent in local currency, compared to the 8 percent to 11 percent projected before. Revenue for the upcoming quarter is expected to be between $16.1 billion and $16.7 billion.
As opposed to the prior range of $11.20 to $11.52, the business also stated that it anticipates earnings per share to be between $10.84 to $11.06. They also announced a $1.12 per share cash dividend for the quarter.
This wave of layoffs already had a variety of tech giants, including Microsoft, Amazon, Twitter, and Meta. Accenture became the latest corporation to join the list of IT behemoths to opt for job layoffs on Thursday. The announcement comes just after Amazon said it would be firing 9,000 additional people in the coming weeks, mainly from its AWS, advertising, and Twitch businesses. The worldwide e-commerce company has previously cut off approximately 18,000 people.
The layoffs began in 2022 and increased across most of the technological industry. The tech sector is eliminating employment at a rate comparable to the early stages of the Covid-19 crisis.
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