Accenture slashes 19,000 jobs worldwide

Accenture plans to slash 19,000 jobs worldwide because it makes an attempt to chop prices amid a dark financial image.

The Irish-American skilled providers firm mentioned in a Thursday submitting that it could spend $US1.2 billion ($1.8 billion) in severance to chop 2.5 per cent of its workforce over the following 18 months, and one other $US300 million to consolidate its workplace house.

More than half of the axed roles can be amongst back-office employees, the corporate mentioned.

Professional services company Accenture says it plans to slash 19,000 jobs. — Professional providers firm Accenture says it plans to slash 19,000 jobs. (SOPA Images/LightRocket through Gett)

Accenture, which has 738,000 workers globally together with in Australia and New Zealand, mentioned in its newest quarterly report back to the Securities and Exchange Commission that it continues to rent, however had “initiated actions to streamline operations and transform our non-billable corporate functions to reduce costs”.

It shouldn’t be but identified how or if its Australian operations will likely be affected by the cuts.

The $US167 billion firm downgraded its income progress outlook for the 2023 fiscal yr to between 8 per cent and 10 per cent, from its earlier estimate of between 8 per cent and 11 per cent.

Shares in Accenture rose 3.9 per cent to hit $US263 ($393) apiece in early commerce after its announcement.

The New York-listed inventory is down by greater than 5 per cent over the previous 12 months.

More than half of the axed roles will likely be back-office employees, the corporate mentioned. (NurPhoto through Getty Images)

Accenture’s rivals are additionally attempting to trim their prices.

Consulting large KPMG introduced in an inside memo final month that it could reduce nearly 2 per cent of its US workforce because it anticipated waning consumer demand, in accordance with a Financial Times report.

McKinsey may additionally slash as many as 2000 non-consulting employees in certainly one of its greatest spherical of layoffs ever, Bloomberg reported final month, citing unnamed sources near the matter.

It not simply consulting feeling the pinch.

Thousands of employees within the tech trade have been laid off in latest months as increased rates of interest, inflation and recession fears have led to a pullback in promoting and client spending.

Last week, Facebook-parent Meta mentioned it deliberate to put off one other 10,000 employees, its second spherical of great job cuts in 4 months.

Taken collectively, the cuts will cut back Meta headcount by about 25 per cent.