Accenture announces cuts
More tech cuts have been announced this week.
Tech consulting giant Accenture has announced that it will cut 19,000 employees, or 2.5 per cent of its global workforce, in anticipation of lower demand for its services. The firm has also lowered its profit forecasts.
More than half of the staff cuts will affect back-office workers, and around 800 senior partners will also be axed. Accenture's share price surged following the announcement.
The cuts reflect a trend of corporate clients reducing their spending on advisory services, with other consulting firms, including IBM, KPMG Australia, and McKinsey, also making significant staff cuts.
The majority of the cuts in Accenture's Australian and New Zealand operation will come from back-office workers.
The firm expects revenue growth to be between 8 per cent and 10 per cent, compared to the previous projection of an 8 per cent to 11 per cent increase.
The cuts will happen over the next 18 months, and the company has set aside US$1.5 billion in charges associated with the cost-cutting.