IT layoffs: IT consulting firm Accenture has cut 11,000 jobs across its global workforce, the tech giant announced on Thursday, as it released its quarterly results, and anticipates further layoffs in the coming months. The job losses come amid the company’s accelerated AI push.
The IT major announced an $865 million restructuring plan due to anticipated slower growth this year, attributed to reduced corporate demand caused by federal spending restrictions.
How much did Accenture spend on layoffs?
According to Accenture’s Q4FY25 earnings, the IT giant’s employee business optimisation costs, including employee severance costs, touched $615 million in the last quarter, with an additional $250 million expected in the current quarter. Notably, severance costs include the financial payments or benefits a company provides to an employee due to layoffs.
How much did Accenture spend on layoffs?
According to Accenture’s Q4FY25 earnings, the IT giant’s employee business optimisation costs, including employee severance costs, touched $615 million in the last quarter, with an additional $250 million expected in the current quarter. Notably, severance costs include the financial payments or benefits a company provides to an employee due to layoffs.
In fiscal 2024 and 2023, the company recorded business optimisation costs of $438 million and $1,063 million, respectively, primarily for employee severance, according to Accenture’s annual report.
Accenture restructuring
IT giant’s $865 million restructuring programme primarily includes severance costs associated with this talent strategy.
“We’re trying to—in a very compressed timeline where we don’t have a viable path for skilling—sort of exiting people, so we can get more of the skills we need,” CEO Julie Sweet told analysts over a call.
Accenture had 7,79,000 employees by the end of August, which is approximately 11,000 fewer than the 7,91,000 staff members it had three months earlier.
Accenture Q4 results
Accenture reported a 7 per cent increase in revenue year-on-year, reaching $17.60 billion for the June-August 2025 quarter. The company’s fiscal year runs from September to August. Accenture also mentioned that approximately 2.5 per cent of the revenue change was due to foreign exchange impact.