Accenture to lay off 19,000 employees amid challenging global economic conditions

Just two days before Amazon had announced that it would cut 9,000 jobs.

On Thursday, another major global firm, Accenture, has also jumped on the bandwagon, declaring that it would cut down on its forcework by 19,000 employees.

What is interesting these job cuts have come on the heels of Accenture's second-quarter FY23 results, which show that the company's bookings and revenues increased during the quarter.

However, the company has reduced its annual profits forecasts and revenue growth.        

"We are also taking steps to lower our costs in fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead," Julie Sweet, Chair and CEO, Accenture, said in a statement.

Accenture announced that its revenues saw an increase of 5 per cent at $15.8 billion, while its new bookings jumped 13 per cent to $22.1 billion during the quarter.

During the second quarter of fiscal 2023, Accenture initiated actions to streamline operations, transform non-billable corporate functions and consolidate office space to reduce costs.

Accenture registered $244 million in business optimisation costs during the second quarter.

The company said that it expects to record total costs of approximately $1.5 billion through fiscal 2024.

"Accenture estimates $1.2 billion for severance and $300 million for consolidation of office space, with approximately $800 million expected in fiscal 2023 and $700 million in fiscal 2024," said the company.

(with inputs from IANS)