Software services company, Accenture has lowered its annual revenue and profit forecasts and has announced that it will soon be trimming its global workforce by 2.5% i.e- the company would be laying off 19,000 employees soon.
While various e-commerce players and tech businesses around the globe have been announcing layoffs, Accenture is one of the first few to make such an announcement in the Indian IT sector.
Stating the reason behind the move, Accenture mentioned that ‘currency headwinds’ and ‘wage inflation’ had a direct impact on its decision to lay off people giving in to ‘macroeconomic concerns’ and ‘uncertainty’.
In an SEC filing, Accenture mentioned, “While we continue to hire, especially to support our strategic growth priorities, during the second quarter of fiscal 2023, we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs.”
“Over the next 18 months, these actions are expected to result in the departure of approximately 19,000 people (or 2.5% of our current workforce), and we expect over half of these departures will consist of people in our non-billable corporate functions,” it added.
Commenting on the impact on India, a company statement said, “This may differ by market and by country, as a consequence of our different footprint and growth, and should not be taken as a figure applicable to all geographies.”
Moreover, Accenture had also lowered its annual revenue and profit projections and has even forecasted its Q3 revenue to be in the range of 8-10% juxtaposed to its earlier forecast which mentioned 8-11%.