Tech consultancy giant Accenture has announced plans to cut 19,000 jobs or 2.5% of its global workforce as tech companies around the world continue to reduce expenses in the wake of dwindling global economic conditions.
The Irish-American professional services company said in a filing that it would spend $1.2 billion in severance to cut 2.5% of its workforce over the next 18 months, and another $300 million to consolidate its office space.
The Dublin-headquartered firm said that its actions to streamline operations and transform non-billable corporate functions to reduce costs are expected to result in the departure of approximately 19,000 people (or 2.5% of our current workforce) over 18 months.
Accenture is a leading technology consulting company that helps businesses, governments, and other organizations build their digital core. The firm now expects annual revenue growth to be between 8% and 10%.
“Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence,” the tech consulting firm said. “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 added.
Since late last year, the tech sector has laid off thousands of employees due to a demand downturn caused by high inflation, rising interest rates, and recession fears.
Amazon has slashed 27,000 jobs. Facebook parent company Meta has announced to cut 21,000 roles since last November. Tech giants Microsoft and Google parent company Alphabet have announced that they will be laying off over 22,000 employees collectively.
