Accenture to cut 19,000 jobs, trims forecasts


On Thursday, Accenture Plc revised its sales and profit forecasts and said that it will eliminate around 19,000 positions. Although corporate spending on IT services is affected by the prospects for the global economy, the company was the most recent to lay off workers.

Accenture has lowered its expectations for sales and profit because it anticipates that recession-averse businesses will limit their technology spending. Instead of expecting 8% to 11% annual revenue growth, Accenture now anticipates 8% to 10% local currency growth. Instead of the previous range of $11.20 to $11.52, the business now anticipates earnings per share to be in the range of $10.84 to $11.06. Revenue for the upcoming quarter is expected to be between $16.1 billion and $16.7 billion, according to the company.

The corporation disclosed that employees at its non-billable corporate functions will be affected by more than half of the layoffs. The company’s shares increased 4% before the closing bell.

Competitor Cognizant Technology Solutions reported a slow growth in bookings—contracts that IT service providers anticipate obtaining in the future—in the preceding month. This came about as a result of their first-quarter sales prediction being lower than what the market anticipated.

Source: mint