Accenture to Cut More Jobs Amid AI Skills Shift
Global consulting firm Accenture has reportedly cut over 11,000 employees in the past three months and plans to continue layoffs, specifically targeting those who lack proficiency in artificial intelligence (AI). The restructuring, impacting its global workforce, is expected to continue until the end of November.
Restructuring and Costs
According to reports, Accenture recently announced a six-month restructuring plan valued at $865 million USD. These funds are primarily allocated to cover costs associated with the layoffs, including severance packages. The scale of the restructuring demonstrates Accenture's commitment to adapting to the evolving technological landscape and its focus on AI capabilities.
Employee Impact
As of the end of August, Accenture's total workforce stood at 779,000, a significant decrease from 791,000 three months prior. Further workforce reductions are anticipated. The changes reflect the pressure on companies to adapt to AI and automation. Accenture is not an exception to this trend, and has made the decision to restructure its workforce to maintain its competitive edge.
Focus on AI Training
Accenture CEO Julie Sweet stated that the company is providing agentic AI training to over 700,000 employees to meet the growing demand for digitalization and AI services. Sweet emphasized the need for constant training and realignment amidst rapid technological advancements.
"Retraining is still the preferred solution, but not all employees are capable of it. Our time is tight, and if retraining is not feasible, we have to make the difficult decision to lay off employees." - Julie Sweet, Accenture CEO
Financial Implications and Reinvestment
Accenture CFO Angie Parker indicated that the restructuring program is expected to save the company over $1 billion USD. This money will be reinvested in employee training initiatives aimed at improving operational efficiency. This underscores Accenture's long-term commitment to developing its workforce and enhancing its capabilities.
Continued Hiring in AI
Despite the ongoing layoffs, Accenture plans to expand its AI team, with new hires expected in the United States, Europe, and other major markets. This proactive approach suggests Accenture's sustained focus on investing in AI-related talent and projects, despite the overall headcount reduction.
Revenue Growth Fueled by AI Demand
Accenture's revenue for fiscal year 2025 reached $69.7 billion USD, representing a 7% year-over-year increase. Julie Sweet attributed this growth to strong client demand for the company's AI offerings. This financial performance highlights the strategic importance of AI to Accenture's business model.