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.
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.