Accenture is embarking on a major workforce restructuring, letting go of employees who cannot be reskilled for the era of artificial intelligence (AI),
as the consulting giant seeks to adapt to changing corporate demands and global economic pressures, said a report by FT. Over the past three months, the company has reduced its global headcount by more than 11,000, part of a broader plan affecting roles where reskilling is deemed unviable. CEO Julie Sweet described the move as an effort to align the workforce with future skills needs, saying, “We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need.” Workforce and Restructuring Costs As of August 2025, Accenture employed 779,000 people, down from 791,000 at the end of May. While the company has not disclosed exactly how many positions were cut directly due to the restructuring, severance and related costs totaled $615 million in the last quarter, with an additional $250 million expected in the current three-month period. The layoffs are part of an $865 million restructuring program, aimed at improving efficiency and responding to sluggish corporate demand for consulting projects. In particular, US federal government spending has slowed, historically accounting for around 8% of Accenture’s revenue, due to initiatives such as the Department of Government Efficiency’s clampdown on IT contracts and consulting spend. Financial Performance Amid Cuts Despite workforce reductions, Accenture reported a 7% increase in revenue to $69.7 billion, with net income up 6% to $7.83 billion in the fiscal year ending August 2025. The company anticipates slower revenue growth of 2–5% in the coming fiscal year, citing both reduced federal spending and cautious corporate hiring for shorter-term consulting projects. Accenture also aims to maintain operating profit margins, targeting at least a 10 basis point annual increase, even amid challenging market conditions. AI and Digital Transformation Focus The company is increasingly investing in AI and digital skills, a strategy central to its long-term growth. Generative AI-related projects accounted for $5.1 billion in new bookings, up from $3 billion two years ago. Accenture now employs 77,000 AI- or data-skilled professionals, almost double the 40,000 reported in 2023. Sweet emphasized that while some staff are being exited, the company’s overall headcount is expected to grow as it reskills employees for AI and digital services, with programs targeting emerging technologies and high-demand areas. Market and Investor Reaction The announcement and restructuring plan led to a 2.7% drop in Accenture shares, closing at the lowest level since November 2020. Analysts noted that while revenue growth remains positive, investors are cautious about slower corporate demand, government contract restrictions, and costs associated with the restructuring. Strategic Implications Accenture’s moves reflect a broader trend in the consulting industry: companies are increasingly reshaping their workforce to focus on AI, digital transformation, and high-value consulting work while trimming roles tied to traditional service models. By investing heavily in upskilling, Accenture aims to maintain its competitive edge and continue delivering margin growth, despite the challenges posed by economic uncertainty and fluctuating client demand. CEO Julie Sweet summed up the strategy: “We are investing in upskilling our reinventors, which is our primary strategy. Those we cannot reskill will be exited, but our overall workforce is positioned to grow in line with the future of digital and AI consulting.”
