Accenture, the Irish-American professional services company, has announced plans to cut 19,000 jobs worldwide as part of cost-cutting measures in response to a challenging economic environment. The company said it would spend $1.2 billion in severance to cut 2.5% of its workforce over the next 18 months, with more than half of the axed roles affecting back-office staff. It will also spend another $300 million on consolidating office space. Accenture is the latest consultancy, tech, and finance firm to make staff cuts in the face of economic uncertainty.
McKinsey & Co. announced last month that it would axe 2,000 jobs, while KPMG said it had cut almost 700 professionals from its US advisory practice. The news comes just 16 months after Accenture pledged to create 3,000 tech jobs in the UK over three years, half of which were outside London, although the company says the commitment still stands. Accenture also lowered its revenue growth outlook for the 2023 fiscal year from between 8% and 11% to between 8% and 10%. Despite this, the company’s shares rose 3.9% to hit $263 apiece in early trade after the announcement.
