Accenture warns of a bleak FY26 with layoffs and divestments

Accenture is bracing for subdued fiscal 2026, unveiling plans to trim its workforce and exit certain acquisitions as part of a wider restructuring aimed at weathering slowing demand.

The company continues to invest in generative AI and cloud services, but CEO Julie Sweet acknowledged the limits of their momentum. “While we continue to see pockets of strong AI-driven demand, overall growth in our key markets is moderating,” she said on September 25.

Accenture did not provide detailed figures on its workforce reductions but confirmed that over 11,000 jobs have been eliminated globally in the past three months, with the possibility of further layoffs ahead.

By the end of August, the company’s employee count had fallen to 779,000, down from 791,000 three months earlier. It was also stated that the layoffs, which started earlier this year, are expected to continue through November.

CFO Angie Park added that revenue growth in FY26 will undershoot prior guidance, with the company sharpening its focus on efficiency and prioritising higher-return investments.

The belt-tightening mirrors a broader trend in India’s IT industry. Tata Consultancy Services (TCS), the country’s largest IT services provider, has announced more than 12,000 layoffs in recent months, citing skills mismatches despite ongoing AI and cloud opportunities.

Also Read: TCS, Infosys, IT stocks fall for sixth day after Accenture results, extend ₹2 lakh crore wipeout



Accenture said reskilling programmes and targeted hiring will continue to preserve client delivery capacity, while headcount is still expected to grow in the US and Europe over the year.

Subdued demand

The company now expects FY26 revenue growth of just 2–5% in local currency, far below the 7% expansion achieved last fiscal. That guidance excludes a 1–1.5% drag from its US federal business, where procurement has slowed following the Trump administration’s appointment of Elon Musk to lead the Department of Government Efficiency (DOGE).

“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 had said earlier this year.

Acquisition pullbacks

Alongside the layoffs, Accenture announced plans to divest $865 million worth of non-core assets. The move is part of a portfolio optimisation strategy designed to channel resources into higher-growth areas such as AI, digital services, and cloud, while streamlining operations and tightening its focus on emerging technologies.