Accenture joins tech companies crisis, to cut 19,000 workers
The layoffs, which the technology company will carry out over the next three months, will cost the company $1.2 billion in severance payments.
The Big Tech crisis continues. Accenture is the latest tech giant to announce a round of layoffs, joining companies like Amazon and Meta.
The technology services company reported Thursday that it plans to shed a total of 19,000 jobs worldwide. Accenture executives made this decision after, according to Europa Press, receiving lower-than-expected forecasts for annual revenues and earnings.
Accenture reported revenues of $3.49 billion for the first fiscal quarter. This figure represents an increase of 1.8% over the previous period. Julie Sweet, president and CEO of the group, explained what these results meant for the company:
However, the good financial results were not enough to keep the entire workforce on the payroll. Accenture informed the Securities and Exchange Commission (SEC) that it would lay off 2.5% of its current workforce. This frill result in cutting 19,000 jobs out of the 738,000 that the company claimed to have as of Feb. 28, 2023. The cutback comes due to economic uncertainty, according to the report Accenture submitted to the SEC:
The move, however, will not come cheap for the technology company. UPI reports that Accenture will pay out $1.2 billion in compensation over the next three months. In addition, Accenture intends to invest a further $300 million to consolidate its office space.