Accenture Braces For Slowdown: Layoffs Loom, $865M In Deals Scrapped | Business News


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Accenture is cutting jobs, exiting parts of its portfolio as it braces for slower growth in FY26, highlighting mounting pressure in IT services sector

Accenture (File Photo)

Accenture (File Photo)

Accenture announced plans to cut staff and divest certain acquisitions as it braces for slower growth in FY26, the company revealed during its September 25 earnings call.

“We are exiting, on a compressed timeline, people where re-skilling, based on our experience, is not a viable path for the skills we need,” said CEO Julie Sweet.

The company did not disclose the exact number of layoffs. The move comes even as Accenture continues to invest heavily in generative AI and cloud services, which remain strong demand drivers.

Despite the job cuts, Accenture said it expects continued headcount growth across the US and Europe in FY26. The changes highlight how even top-tier IT services firms are trimming staff amid slowing client demand, despite ongoing interest in AI and cloud projects.

In comparison, Tata Consultancy Services (TCS)—India’s largest IT services provider—has also laid off over 12,000 employees this year, citing skills mismatch as a key reason.

Accenture’s own workforce shrank by about 11,000 employees in Q4FY25, reducing its global headcount to roughly 780,000.

“The business optimization program has two parts: one related to rapid talent rotation that Julie mentioned, which reflects severance associated with headcount reductions we are making on a compressed timeline; and second, related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities,” explained CFO Angie Park.

Following the earnings announcement, Accenture’s shares slipped around 2%.

Accenture Flags Lower Growth

Accenture now expects FY26 revenue growth of just 2–5% in local currency, below its previous forecast of 3–6%, and sharply down from the 7% growth achieved in FY25.

The guidance excludes an additional 1–1.5% drag from its US federal business, which has slowed due to changes in government procurement policies.

This slowdown reflects a broader industry trend. After Donald Trump assumed the US presidency, he appointed Elon Musk to lead the Department of Government Efficiency (DOGE), tasked with “modernising federal technology and software to maximise governmental efficiency and productivity.”

“The new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue,” Sweet said earlier on March 20, 2025.

Analysts questioned the impact of these exits on client delivery and talent retention. The management assured that reskilling programs and hiring in priority areas would continue to maintain service quality.

Acquisition Pullbacks

As part of its portfolio optimisation strategy, Accenture will exit non-core businesses and divest assets worth $865 million.

The goal is to reallocate resources toward higher-growth areas such as AI, digital services, and cloud initiatives, allowing the company to streamline operations while doubling down on emerging technologies.

Aparna Deb

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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