Accenture Lays off 7,000 Employees in India

BUSINESS TECHNOLOGY

According to a report, Accenture intends to eliminate at least 7,000 jobs in India as part of its global plans. The organization has chosen to cut around 2.5 percent of its all-out labor force, or, 19,000 positions, proceeding with the latest thing of cutbacks among the biggest worldwide organizations. It has been reported that non-billable corporate functions will account for more than 50% of global job cuts.

According to Accenture’s CFO, K.C. McClure, these actions are anticipated to have an effect on approximately 2.5%, or 19,000 of our current employees. Of these, more than half are non-billable corporate functions, and they will affect more than 800 of their leaders across our markets and services.

With revenues of USD 15.8 billion for the second quarter of fiscal 2023, which ended on February 28, 2023, Accenture posted an increase of 5% in US dollars and 9% in local currency over the previous year.

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For the quarter, new bookings totaled a record USD 22.1 billion, with USD 10.7 billion going to consulting and USD 11.4 billion going to managed services. However, Accenture CEO and Chair Julie Sweet said that the company wants to cut costs while continuing to invest in their business and people to capture the significant growth opportunities in the fiscal years 2024 and beyond.

Accenture stated that it anticipates local currency revenue growth of between 8% and 10% for fiscal 2023, up from the previous range of between 8% and 11%.  Additionally, the company reduced its expectations for operating cash flow to between USD 8.7 billion and USD 9.2 billion, as opposed to the previous range of USD 8.5 billion and USD 9.0 billion.

In the December-February quarter, Accenture added 424 net employees, bringing its total workforce to 7,38,143. This marked the slowest pace of net employee addition in the company’s last ten quarters.

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