Global IT services company Accenture is likely to cut at least 5 percent of its low-performing workforce.
Accenture has 509,000 people serving clients in more than 120 countries. Accenture’s employees in India are set to lose jobs owing to the slow business. Accenture India has the largest employee base of nearly 2 lakh.
According to a report in the Australian Financial Review (AFR) an internal staff meeting by Accenture CEO Julie Sweet in mid-August states the same. IANS reported that Accenture is not planning extraordinary global workforce actions at this time.
“Every year, as part of our performance process, we have conversations with people about how they are performing, areas for improvement, their potential to progress, and whether they are a long term fit for Accenture,” Accenture said.
This year, across all parts of our business and all career levels, we will identify 5 percent of our people as our lowest performers, and these individuals will transition out of Accenture. This is consistent with our actions each year,” Accenture said.
Accenture CEO Sweet said: “In a normal year, we transition out about 5 percent and we hire to replace them, because we are in a demand scenario. Right now, we’re not in a demand scenario, so if we manage out the same percentage of people and don’t replace them, it allows us to continue to invest and preserve some people who have lower chargeability for when the market comes back.”
“This year, in addition to the normal 5 percent, we’ve identified more people who need improvement. So we’re making sure. If we have to make other actions, we know where our performance is.”
Accenture India said: “It continues to hire, and as part of our compensation programs, we also recently recognized a number of our people with bonuses and promotions.”