Accenture has trimmed its global workforce by over 11,000 employees in the past three months and indicated that more layoffs could follow if staff cannot be retrained for roles in the evolving artificial intelligence (AI) landscape. The company revealed a $865 million restructuring plan in response to declining corporate demand and reduced U.S. federal spending. CEO Julie Sweet stated that employees unable to transition to AI-focused roles within a compressed timeframe are being exited. As of August-end, Accenture’s workforce stood at 779,000, down from 791,000 in May. The company recorded $615 million in severance and related costs last quarter and expects an additional $250 million in the current quarter.
Despite these job cuts, Accenture aims to maintain its historical annual margin expansion of at least 10 basis points in the next fiscal year. Revenues rose to $69.7 billion for the year ending August, with net income at $7.83 billion. While demand for long-term digital transformation remains solid, short-term consulting has slowed. AI-focused bookings reached $5.1 billion this year, and Accenture now employs 77,000 AI and data specialists, up from 40,000 two years ago.
