According to the Ireland-based professional services company, the layoffs will take place over the coming 18 months and more than half of the job cuts are expected to take place in the company's non-billable corporate functions
Accenture to layoff nearly 19,000 employees. (Credit: Maksym Kozlenko/Wikimedia Commons)
Accenture has announced that it will lay off nearly 2.5% of the company’s workforce citing the economic and geopolitical uncertainty in a move that will impact nearly 19,000 of its employees.
The job cuts were confirmed by the Ireland-based professional services company through its second quarter of fiscal year 2023 results.
According to the company, the layoffs will take place over the coming 18 months.
More than half of the job cuts are expected to take place in the company’s non-billable corporate functions.
Accenture stated: “Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.
“There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business, particularly with regard to wage inflation and volatility in foreign currency exchange rates.
“In some cases, these conditions have slowed the pace and level of client spending.”
The company’s workforce expanded to nearly 738,000 as of 28 February 2023 from about 699,000 as of 28 February 2022. The increase in workforce is a result of the demand for the company’s products and services as well as employees added in line with acquisitions, said Accenture.
The professional services company has reported a net income of $1.55bn for the February 2023 quarter which is a decrease of 9.8% compared to the net income of $1.65bn reported in the corresponding quarter of the previous year.
During the reported quarter, Accenture registered total revenue of $15.8bn, which is a 5% increase when compared to $15.04bn in the same quarter of the previous year.
Earlier this week, Amazon announced plans to execute a second round of layoffs by cutting down its workforce by nearly 9,000 which came after Meta’s announcement to cut 10,000 jobs in its second round of layoffs.