In another round of job cuts in the Tech industry, Accenture Plc has decided to lower its annual sales and profit expectations. Consequently, the company has also decided to cut around 2.5% of its employees, or 19,000 workers. More than half of these jobs will be in its non-billable corporate functions.
Accenture Trims Down Workforce
Since late last year, the tech sector has been laying off hundreds of thousands of workers due to a demand downturn caused by high inflation and rising interest rates. These companies include giants such as Google, Meta, Microsoft, and Intel.
Last month, its rival Cognizant Technology Solutions (CTSH.O) forecasted “muted” growth in bookings or the agreements IT services businesses have in the pipeline, in 2022, as well as lower-than-expected quarterly revenue.
IBM Corp (IBM.N) and Tata Consultancy Services (TCS.NS), India’s largest IT services provider, have also reported difficulty in Europe, with customer spending getting impacted by the Ukrainian crisis.
Accenture now anticipates yearly revenue growth of 8% to 10%, down from its earlier prediction of 8% to 11%.
Earnings per share are estimated to be in the USD 10.84 to USD 11.06 range, down from USD 11.20 to USD 11.52 before. Severance expenses are expected to total USD 1.2 billion in fiscal 2023 and 2024.
“Companies remain focused on executing compressed transformations,” Chief Executive Julie Sweet said in a post-earnings call referring to how institutions were trying to trim down amidst an unstable economy.
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