Accenture to cut jobs, exit acquisitions as growth slows in FY26
While Accenture did not disclose the specific number of job cuts planned, its headcount already fell by around 11,000 employees in Q4FY25.
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Accenture is preparing to make significant workforce cuts and exit certain acquisitions as it braces for slower growth in fiscal 2026, the company announced during its latest earnings call.
CEO Julie Sweet, as per a Moneycontrol report, said the firm is accelerating exits in areas where reskilling is no longer proving viable.
“We are exiting, on a compressed timeline, people where re-skilling based on our experience, and is not a viable path for the skills we need,” she said on September 25.
While Accenture did not disclose the specific number of job cuts planned, its headcount already fell by around 11,000 employees in Q4FY25, bringing the global workforce to about 780,000.
The company’s “business optimization program” includes two measures: a rapid rotation of talent resulting in severance costs and the divestiture of two acquisitions that no longer align with its strategic priorities, CFO Angie Park added.
Meanwhile, Accenture continues to invest in growth areas such as generative AI and cloud services, which have seen robust demand. However, the company has tempered its financial outlook.
For FY26, Accenture now expects revenue growth in the range of 2 to 5 percent in local currency - lower than its earlier guidance of 3 to 6 percent, and sharply below the 7 percent growth recorded in the just-concluded fiscal year.
The slowdown at the world’s largest IT services company underscores the wider turbulence in the sector. India’s Tata Consultancy Services (TCS), the largest IT firm in the country, recently announced layoffs of over 12,000 employees, citing skills mismatch as a key factor.
