Accenture, a professional services company, has announced its plans to cut 19,000 jobs worldwide in an effort to reduce costs. The company will spend $1.2 billion on severance and consolidate its office space. The majority of the job cuts will be among back-office staff. Accenture downgraded its revenue growth outlook for the next fiscal year. Despite the news, shares in Accenture rose after the announcement. Other consulting firms, such as KPMG and McKinsey, are also making job cuts. The tech industry has also experienced layoffs due to economic factors. Meta, the parent company of Facebook, plans to lay off 10,000 workers.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Accenture plans to slash 19,000 jobs worldwide | Workforce reduction | Smaller workforce, cost-cutting measures | Cost-cutting, economic uncertainty |
| Accenture downgraded its revenue growth outlook | Lower revenue growth expectations | Slower revenue growth for the next 10 years | Economic conditions, market performance |
| Accenture’s rivals are also trying to trim costs | Cost-cutting measures among consulting firms | Decreased workforce, streamlining operations | Anticipated waning client demand |
| Layoffs in the tech industry | Job cuts in the tech sector | Reduced workforce in the tech industry | Higher interest rates, inflation, recession fears |
| Facebook-parent Meta plans more job cuts | Workforce reduction at Meta | Smaller workforce at Meta, cost-cutting measures | Strategic restructuring, cost reduction |