Accenture announced on Thursday that it will cut about 19,000 jobs. Further the company has lowered its annual revenue and profit projections. This is accounted to worsening global economic outlook. The company is planning to complete these layoffs in the next 18 months.

On Thursday, the company revised its projections for revenue growth and profit amid concerns that recession-averse businesses would reduce their spending on technology.

The company now expects annual revenue growth to be in the range of 8 percent to 10 percent in local currency, compared to 8 percent to 11 percent expected previously.

In a Securities and Exchange Commissions filling Accenture mentioned that the utilization for the second quarter of fiscal 2023 was 91 percent, compared to 92 percent in the second quarter of fiscal 2022.

The company hired to meet current and projected future demand. and the workforce increased to approximately 738,000 as of February 28, 2023, compared to approximately 699,000 as of February 28, 2022.

"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 percent of our current workforce), and we expect over half of these departures will consist of people in our non-billable corporate functions," said Accenture.

Also read: Accenture to acquire industrial AI company Flutura to build its data and AI capabilities

First Published:Mar 23, 2023 4:54 PM IST