Accenture Cuts 11,000 Jobs While Pivoting to AI-Driven Workforce Transformation

Accenture has eliminated more than 11,000 positions from its global workforce over the past three months, implementing an $865 million restructuring programme as the IT consulting giant adapts to the artificial intelligence era. Chief Executive Julie Sweet has warned that additional redundancies will follow for employees who cannot be successfully retrained for emerging AI-focused roles.

Context and Background

The workforce reduction brings Accenture’s total headcount to 779,000 by the end of August, down from 791,000 three months earlier. The consulting group faces continuing sluggish corporate demand for traditional consulting projects, combined with reduced spending within the US federal government sector, which historically represents approximately 8 per cent of the company’s revenue.

Despite the significant job cuts, Accenture reported revenue growth of 7 per cent to $69.7 billion for the year ending in August, with net income rising 6 per cent to $7.83 billion. The company has dramatically expanded its AI capabilities, with generative AI projects accounting for $5.1 billion of new bookings in the past year, compared to $3 billion previously. The organisation now employs 77,000 AI and data professionals, nearly doubling from 40,000 two years ago.

Sweet emphasised that the restructuring reflects a strategic shift rather than simple cost-cutting: “We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need.”

Looking Forward

Accenture expects revenue growth to slow to between 2 and 5 per cent in the current fiscal year, partly due to government spending constraints under the Department of Government Efficiency initiative. However, the company maintains confidence in its long-term strategy, projecting continued expansion of operating profit margins at the historic annual rate of at least 10 basis points.

The consulting firm plans overall headcount growth in the coming year, focusing on what Sweet describes as “investing in upskilling our reinventors.” This approach reflects the broader industry challenge of balancing traditional consulting expertise with rapidly evolving AI capabilities, as organisations worldwide navigate digital transformation priorities.

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