Consulting giant moves to restructure global workforce to meet demand for AI-driven services
Accenture is moving decisively to realign its global workforce, having cut more than 11,000 jobs in the past quarter and signalling further reductions for employees whose skills cannot be transitioned to artificial intelligence roles. According to a report in the Financial Times, the Dublin-based consulting giant is navigating a period of subdued demand for traditional consulting services and increased pressure to deliver efficiencies, particularly in the wake of U.S. government spending constraints and evolving client expectations.
The company recently announced an $865 million restructuring plan, encompassing severance costs and targeted divestitures, as it pivots to meet soaring demand for digital and AI-driven services. “We are exiting, on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need,” chief executive Julie Sweet told analysts, underscoring the company’s focus on upskilling employees for emerging roles.
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Accenture’s workforce stood at 779,000 at the end of August, down from 791,000 three months earlier. The company expects the current round of layoffs to continue through November. Severance and related expenses reached $615 million in the most recent quarter, with an additional $250 million anticipated in the next, reflecting the scale of the transition.
Despite these cuts, Accenture continues to invest in talent development, with 77,000 employees now trained in AI or data-related fields—nearly double the figure from two years ago. “We are investing in upskilling our reinventors, which is our primary strategy,” Sweet said, suggesting that overall headcount could rise again as the company shifts resources to higher-demand areas.
The restructuring comes as Accenture posted fourth-quarter revenues of $17.6 billion, surpassing analyst estimates, and reported annual revenues of $69.7 billion, up seven per cent year-on-year. Net profit rose six per cent to $7.83 billion. However, the company projects slower revenue growth of two to five per cent for the new financial year, with US federal contract delays and cancellations—historically about eight per cent of revenue—dragging on results. Executives noted that these government spending cuts trimmed growth by roughly 20 basis points this year, according to a report by Yahoo! Finance.
The company’s focus on generative AI is clear, with $5.1 billion in new bookings attributed to AI projects in the past year, up from $3 billion previously. Accenture’s new talent strategy emphasises upskilling, while roles with skills deemed non-viable are being phased out. The company is also leveraging AI to enhance productivity across its operations.
While Accenture continues to hire, it is also contending with external challenges. Recent changes to US H-1B visa policy, including a $100,000 one-off fee, have raised concerns about labour costs and access to skilled workers. Still, CEO Julie Sweet noted that only about five per cent of Accenture’s US workforce is on such visas, minimising the impact.
Looking ahead, Accenture has provided earnings guidance for fiscal 2026, forecasting full-year revenue growth of two to five per cent in local currency, or three to six per cent excluding the impact of its US federal business. The company expects GAAP diluted earnings per share between $13.19 and $13.57, representing a nine to 12 per cent increase.
Despite the turbulence, analysts remain cautiously optimistic, citing Accenture’s robust internal reskilling programs and its ability to redirect resources to high-growth areas. “Accenture has a strong reskilling operation internally,” said CFRA analyst Brooks Idlet, highlighting the firm’s adaptability.
Accenture shares dipped 3.2 per cent in Thursday trading, reflecting investor caution amid industry headwinds and the company’s measured growth outlook. As the consulting sector adapts to the realities of AI and digital transformation, Accenture’s approach underscores the importance of workforce agility and continuous learning for HR leaders navigating similar transitions.
