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Accenture Layoffs 2020: 25,000 Job Cuts Possible, Report Suggests

Accenture layoffs will impact roughly 25,000 employees or at least 5 percent of the IT consulting giant’s workforce, according to The Australian Financial Review.

The global Accenture job cut report surfaces roughly a month after regional layoff reports surfaced. For instance, 700 to 900 employees in the United Kingdom are being cut, according to a July 2020 report from The Guardian. The global IT consulting firm will make the UK cuts from July through September 2020. Roughly 6 percent to 8 percent of Accenture’s UK staff — across all levels and all parts of the business — will be impacted, that report said.

In a note to staff, seen by the Guardian in July, Accenture said:

“We went into the crisis with an overcapacity of people relative to demand. The crisis has caused additional strain on the business due to lower demand and reduced national attrition. In addition, we have identified structural costs that we need to address.”

The layoffs reinforce a recent job cut trend across the IT consulting and IT services sector. Amid the coronavirus pandemic and associated economic fallout, businesses such as Cognizant, Deloitte, KPMG and PwC have confirmed layoffs.

Related: Technology Industry Layoffs – Complete Job Cut List

Accenture’s Diverse Revenue Stream

Despite the current economic challenges, Accenture remains one of the world’s strongest IT consulting firms — thanks to organic R&D (research and development) coupled with tuck-in acquisitions to address cloud, SaaS, big data, analytics, artificial intelligence and cybersecurity opportunities.

Accenture acquired at least 18 companies from January through June 2020, according to ChannelE2E reporting. Key moves include buying Symantec’s MSSP business, which included cyber security services and six security operations centers. Accenture’s overall M&A budget for fiscal year 2020 was $1.6 billion, the company said in March 2020.

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2 Comments

Comments

    Tim:

    Layoffs should start top down.
    If the co. is not meeting its targets, Julie Sweet should be the first one to go, followed by high package leadership.
    There’s lot of fat at the top in Accenture. There are grave mal-practices internally.

    Joe Panettieri:

    Hey Tim: Julie Sweet has been CEO for exactly one year. Accenture is navigating a global pandemic. I don’t think showing the CEO the door is the answer to a larger set of challenges.

    Still, I certainly understand what it’s like to be a rank-and-file employee who gets cut during a challenging economy. I was a layoff victim at a major media company in 2001. At first, I blamed the CEO. Years later, I realized the steps the CEO took saved the company.
    -jp

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