Global consulting and technology firm Accenture has initiated one of the largest workforce reductions in its history, cutting over 11,000 jobs within the past three months as it moves to align its operations with a rapidly growing demand for artificial intelligence (AI) services. The Dublin-based company’s restructuring, valued at $865 million, underscores the mounting pressure in the consulting industry to automate services and optimize costs during a pivotal digital transformation phase.
Accenture announced the changes with a strong focus on upskilling its existing workforce for new AI-driven roles. Nevertheless, CEO Julie Sweet delivered a stark message to staff, openly stating that employees who cannot successfully retrain for AI-related tasks will be “exited on a compressed timeline.” Sweet emphasized, “Where reskilling simply isn’t a viable path, we are making the difficult choice to exit people,” during an investor call last week. Severance and associated costs reached $615 million in the latest quarter, with an additional $250 million set aside for ongoing staff reductions measures expected to yield savings exceeding $1 billion over time
Despite the turbulence, Accenture posted robust financial results for its fourth quarter and fiscal year ending August 2025. Revenues rose 7% to $17.6 billion for the quarter, with adjusted earnings per share expanding 9% year-over-year to $3.03. These figures outpaced analyst expectations and illustrate sustained client appetite for technology and strategy consulting, particularly those connected to AI and digital reinvention. Notably, revenue from advanced AI tripled this year, reaching $2.7 billion. The company also recorded $5.1 billion in generative AI bookings up sharply from $3 billion the prior year. Other key metrics included $21.3 billion in new bookings for the quarter and $80 billion in bookings for the year.
The company projects moderate revenue growth of 2–5% for fiscal 2026 somewhat below analyst consensus amidst continued investment in AI strategy, platform partnerships, and retraining. Its restructuring program will continue through November, raising the possibility of further reductions if reskilling cannot keep pace with technological change.
Also Read: Why Zoho Is Suddenly India’s Hottest Tech Story and What Comes Next?
