By Avishek Banerjee
Copyright republicworld
Accenture Plc will part ways with employees who cannot be retrained for roles in an artificial intelligence–driven environment, as part of a sweeping restructuring programme aimed at reshaping its global operations, according to a news report. “We are reinventing what we sell, how we deliver, how we partner, and how we operate Accenture,” Chief Executive Officer Julie Sweet said during the company’s post-earnings call on 25 September 2025. She added that the firm’s focus is on “upskilling reinvention talent,” while accelerating exits for staff whose skills cannot be aligned with the company’s future requirements.However, the company’s Chief Financial Officer Angie Park clarified that the move is not linked to utilisation rates but rather to a “strategic skills mismatch.” The process is being carried out on what executives called a “compressed timeline,” indicating that the exits will be swift.As of 31 August 2025, Accenture employed 779,000 people—down from 791,000 three months earlier. The headcount reduction reflects the first leg of layoffs that will extend through the first quarter of Fiscal 2026, spanning September to November.The restructuring programme, budgeted at $865 million, covers severance, redeployment, and selected divestitures. In the June–August quarter alone, the company booked $615 million in charges, including $344 million in severance expenses, with an additional $250 million expected in the following quarter.Also Read: Accenture Plans New Andhra Pradesh Campus, Aiming to Add 12,000 Jobs in India | Republic WorldThe initiative is structured around two core priorities:a) Rapid talent rotation: Employees who cannot be reskilled for AI-centric roles will be exited quickly, while new skills are brought into the organisation.b) Divestitures: The company will streamline by shedding businesses and assets no longer aligned with its growth strategy.According to the Financial Times, Accenture expects these measures to help sustain operating profit expansion at its historical pace of at least 10 basis points annually in FY26—though analysts remain cautious about the target in light of subdued demand for short-term discretionary projects.Despite slower deal flow in the past two years, demand for large-scale transformation contracts remains intact, underscoring why Accenture is betting heavily on AI to future-proof its business model.At the same time, Accenture is also expanding its presence in India, its largest global talent hub. The company has proposed a new campus in Visakhapatnam, Andhra Pradesh, which is expected to generate nearly 12,000 jobs over time. Of its 790,000-strong global workforce, more than 300,000 employees are already based in India.
