Accenture, a global consulting and technology firm, has announced that it will be laying off 19,000 employees worldwide as part of a restructuring effort. The layoffs will affect around 5% of Accenture’s total workforce of 7.38 lakh employees. Of the affected employees, around 40% are based in India, where Accenture has a significant presence.
The decision to lay off employees comes as Accenture is facing increased competition in the consulting and technology industry, as well as the economic impacts of the ongoing COVID-19 pandemic. In a statement, Accenture said that the layoffs were part of a broader effort to “reposition our business and invest in growth areas,” and that the company would be offering severance packages and other support to affected employees.
The layoffs are expected to impact a range of roles and functions across Accenture’s global workforce, including consulting, technology, and operations. However, the majority of the affected employees are expected to be in lower-level positions.
The news of the layoffs has been met with concern from some analysts, who have suggested that the move could have a negative impact on Accenture’s long-term growth prospects. Others have pointed to the significant impact that the layoffs will have on Accenture’s India-based workforce, which has been a major driver of the company’s growth in recent years.
In response to the layoffs, some industry experts have suggested that companies like Accenture will need to continue to evolve their business models in order to remain competitive in the rapidly-changing consulting and technology landscape. This could include investing in new technologies and capabilities, as well as exploring alternative business models like outcome-based pricing and risk-sharing arrangements.
Overall, the layoffs at Accenture represent a significant shift for the company, which has historically been known for its strong focus on employee retention and development. However, the company’s leaders have emphasized that the restructuring effort is necessary in order to ensure long-term growth and competitiveness in the global consulting and technology industry.