Accenture layoffs 11,000 Employees; More Job Cuts Likely due to AI-driven Workforce Transformation

Accenture layoffs: In a major restructuring move, global consulting and IT services firm Accenture has laid off more than 11,000 employees worldwide over the past three months. The company says that further job cuts are likely for employees who fail to adapt to the demands of artificial intelligence (AI).

Accenture’s Layoffs: CEO Statement

A few days ago, the Dublin-based company announced an $865 million (approximately ₹7,669 crore) restructuring program. The company warned analysts that more layoffs would be necessary if employees were not retrained quickly. Under CEO Julie Sweet, management has made it clear that reskilling employees is the preferred option, but not all employees will be retained. According to reports, Sweet told investors, “We are doing all of this in a short period of time.” She added, “Where reskilling is not possible, we are having to make the difficult decision to let people go.”

What’s Happening at Accenture?

+ Between May and August, Accenture’s global workforce declined from approximately 791,000 to 779,000.

+ The company has allocated $865 million for a restructuring program to prepare its employees for an AI-centric future.

+ In the last quarter, it incurred $615 million in severance and related costs, and expects to spend another $250 million in the next quarter.

+ Accenture says this isn’t just a one-time layoff. The company plans to reduce positions by November, where “reskilling…is not the right approach.”

+ At the same time, the company is emphasising skills development: it now has approximately 77,000 AI and data specialists, nearly double the number from two years ago.

In the last fiscal year, Accenture earned $5.1 billion from generative AI-related contracts, up from $3 billion the previous year.

+ Despite the layoffs, Accenture achieved 7% revenue growth, reaching $69.7 billion, and its net income increased by 6%.

+ However, expectations for next year are lower: the company anticipates 2-5% revenue growth, citing lower demand for corporate consulting and cuts in US federal spending (which previously contributed 8%).

Accenture Layoffs: A Delicate Balance

The message to employees is clear: adapt or risk losing your job. But for clients, Accenture’s message is one of transformation. By streamlining its workforce and relying more heavily on AI, the company is positioning itself as the ideal partner for organisations concerned about their digital future.

However, this scale of change raises questions about how much human experience will remain in a world increasingly driven by automation. Accenture believes that fewer people, but with better digital skills, will be sufficient to maintain its large client base. Whether this gamble will succeed remains to be seen.

This restructuring underscores how rapidly the consulting industry is changing. Until recently, this sector was considered largely immune to automation. Today, it is one of the most prominent areas where human skills are being compared to the ever-advancing capabilities of AI.

This is happening as industry leaders like Sam Altman are openly stating that artificial intelligence will replace a significant number of jobs across all sectors. Accenture’s move could be a glimpse of what’s to come.

Conclusion:

Accenture’s decision to cut more than 11,000 jobs and warn of further layoffs is not merely a cost-cutting measure; it’s a strategic shift. The company is betting big on AI and data, and is preparing its workforce for the future. This move serves as both a warning and a signal: AI isn’t a future technology; it’s here now, and it’s transforming how work is done in the consulting and digital economy.

The message for professionals is to enhance their skills, stay abreast of industry changes, and build resilience. For organizations, the balance between transformation and treating employees with respect will determine their success. And for the industry, Accenture’s experiment is worth watching; if it succeeds, it could reshape how the industry operates.

Also Read: UGC has Declared 54 State-level Private Universities as Defaulters; see the Complete List Here.