Accenture has announced substantial workforce reductions, targeting thousands of positions for which retraining in artificial intelligence (AI) roles is deemed unfeasible. This revelation came during the company’s recent conference call following its Q4 2025 financial results.
“We are making these adjustments on a condensed timeline, as our experience shows that reskilling is not a viable solution for the competencies we require,” stated CEO Julie Sweet.
Nonetheless, she indicated that despite these layoffs, Accenture anticipates expanding its overall headcount across its three primary markets, including the United States and Europe, in response to burgeoning business demands.
Chief Financial Officer Angie Park revealed that the consulting giant incurred $615 million in restructuring costs in the fourth quarter, primarily related to severance payments. An additional $250 million charge is anticipated in the upcoming first quarter, culminating in total expenses of around $865 million.
“These measures will yield cost efficiencies, which will be redirected to our workforce and operational advancements,” Park articulated during the call.
Extensive AI Transition Amidst Job Reductions
Since the beginning of fiscal 2023, Accenture has significantly bolstered its AI initiatives, nearly doubling its contingent of AI and data specialists to 77,000. Sweet reported that over 550,000 employees have undergone training in the fundamentals of generative AI.
“Advanced AI is increasingly integral to our operations,” Sweet asserted to investors. The company reported a threefold increase in advanced AI revenue, reaching $2.7 billion in fiscal 2025, alongside nearly doubling related bookings to $5.9 billion.
By the end of August, Accenture’s workforce had dwindled to over 779,000, down from approximately 791,000 three months prior. The optimization strategy also entails divesting from two acquisitions that no longer align with the company’s strategic objectives.
Robust Financial Performance Amid Organizational Changes
In spite of the restructuring, Accenture reported a revenue figure of $69.7 billion for fiscal 2025, marking a 7% increase compared to the previous year. The company recorded adjusted earnings per share of $12.93, reflecting an 8% growth and generating $10.9 billion in free cash flow.
For fiscal 2026, Accenture forecasts revenue growth in the range of 2% to 5% in local currency. However, this projection includes an estimated adverse impact of 1% to 1.5% from its contracting federal business. Excluding this federal setback, anticipated growth rises to 3% to 6%.
Sweet emphasized that AI is fostering growth rather than contraction. “We do not perceive AI as a deflationary force; rather, we view it as a catalyst for expansion, akin to the transformative tech evolutions we have previously experienced,” she expressed.
Source link: Timesofindia.indiatimes.com.
