Accenture cuts jobs and scraps $865m in deals, portfolio exits announced
The retrenchment comes amid wider turbulence in the sector. Tata Consultancy Services (TCS) has already laid off over 12,000 employees this year, citing a mismatch in skills and weakening demand.
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Accenture has confirmed a fresh round of job cuts and portfolio exits as it prepares for slower growth in the coming financial year, reflecting growing strain across the global IT services sector despite heavy investment in artificial intelligence and cloud.
Speaking on the firm’s Q4 FY25 earnings call on 25 September, chief executive Julie Sweet said the company was exiting, on a compressed timeline, "people where re-skilling is not a viable path for the skills we need." While she did not disclose a precise figure, Accenture’s headcount fell by around 7,000 in the final quarter, bringing its global workforce down to about 770,000, as reported by News18.
The restructuring comes against the backdrop of moderating client demand. Sweet noted that while there were “pockets of strong AI-driven demand”, overall growth in key markets was slowing. Accenture now expects revenue growth of just 2–5% in FY26, compared with 7% last year, excluding an additional drag of up to 1.5 percentage points from its troubled U.S. federal unit. That division has been hit by procurement delays tied to the Department of Government Efficiency (DOGE), the Elon Musk-led agency reshaping federal contracts.
Chief financial officer Angie Park said the firm will sharpen its focus on efficiency and higher-return projects, confirming plans to divest around $865 million in non-core assets and unwind underperforming acquisitions.
Despite the cuts, Accenture stressed that it will continue hiring and re-skilling in priority growth areas and expects to add staff in the U.S. and Europe during FY26.
The retrenchment comes amid wider turbulence in the sector. Tata Consultancy Services (TCS) has already laid off over 12,000 employees this year, citing a mismatch in skills and weakening demand.
Accenture’s shares slipped 2% following the earnings release, underscoring investor concerns over the firm’s softer growth outlook and retrenchment strategy.
