Accenture To Cut 19,000 of Workforce

Accenture announced that it would be cutting about 2.5% of its workforce in the latest indication of a global economic outlook affecting the IT sector.

The company stated that more than half the layoffs will impact staff at non-billable corporate functions. This boosted its shares by over 4% prior to the bell.

The tech sector has cut down hundreds of thousands of jobs since late last year due to falling demand and high interest rates.

Accenture reports that the rate of attrition in the second quarter fiscal 2023 decreased to 12% from 18% in second quarter of fiscal 2022.

Accenture expects an annual revenue growth of between 8% and 10% this year, as compared to its earlier projection of an increase of 8% to 11%.

The company's earnings per share are expected to be between $10.84 to $11.06, compared to $11.20 to 11.52 in the past.

Accenture's third-quarter forecast was lower than Wall Street estimates. This development comes just a day after 25 basis point increase in interest rates by the US Federal Reserve.