In a bold pivot toward generative AI and digital transformation, global consulting giant Accenture has unveiled an $865 million restructuring programme that includes laying off more than 11,000 employees over just three months.
The move underscores a sweeping realignment of its workforce and raises acute concerns about headwinds for the broader Indian IT and consulting landscape.
Strategic Reset and Workforce Overhaul
During its most recent earnings call, Accenture disclosed that it recorded $615 million in restructuring charges in the June–August quarter, covering severance, asset impairments, and related costs.
An additional $250 million in charges is expected in the next quarter, carrying the total to $865 million for the six-month programme.
As part of the restructuring, the company is “exiting on a compressed timeline” employees whose skills cannot be viably retrained toward AI and data roles, CEO Julie Sweet said. The workforce headcount fell from 791,000 to 779,000 in the period.
Though Accenture did not precisely attribute all job cuts to the restructuring, it signaled that more exits may follow if employees cannot be reskilled to meet future needs. The company is also divesting non-core business lines and reallocating savings into new talent, operations, and AI investments.
Growth Outlook and AI as the Engine
Despite the cuts, Accenture reported a resilient performance: Q4 revenue stood at $17.6 billion, beating expectations, while full-year revenues grew 7 % to $69.7 billion, with net income rising about 6 %.
However, growth is moderating. For FY 2026, the firm projects revenue growth of 2–5 % in local currency — a more cautious outlook given constraints such as slowed federal spending in the U.S., which historically contributes around 8 % of its revenue.
Generative AI is already playing a critical role in Accenture’s future pipeline. The company said bookings in AI projects jumped from $3 billion to $5.1 billion in the past year.
Meanwhile, its AI and data workforce has expanded to 77,000, up significantly from previous years. Sweet emphasized that upskilling “reinventors” would be the company’s primary strategy.
Implications for India’s IT Sector
Accenture employs a large number of staff in India as part of its global delivery model. Its willingness to exit employees unable to adapt could put pressure on local IT firms that follow similar outsourcing and consulting models.
The restructuring highlights that cost, skill gaps, and shifting demand are forcing changes in employee mix across the sector.
Many Indian IT firms have already faced cooling demand, layoffs, and pressure to reskill. The Accenture move signals that the shift is accelerating: talent retention, continuous reskilling, and a sharp focus on AI and domain expertise will be critical differentiators.
Investors and stakeholders are watching closely — the actions at one of the world’s largest consultancies provide a bellwether for how the Indian IT services complex must evolve under the AI imperative.
Also Read: Amazon to Pay $2.5 Billion to Settle FTC Accusations