Accenture, one of the leading IT service providers, said it would cut about 19,000 jobs and has lowered its revenue and profit projections, Reuters news report said.
Accenture said it expects annual revenue growth to be 8-10 percent in local currency, compared to 8-11 percent expected previously.
Accenture has reported revenues of $15.8 billion (+5 percent) for the second quarter of fiscal 2023, ended February 28, 2023. Accenture posted operating margin of 12.3 percent compared to 13.7 percent in the second quarter of fiscal 2022.
“Our strong financial results this quarter again demonstrate that our ability to bring together industry, functional and technology expertise as well as managed services continues to differentiate us with our clients,” Julie Sweet, chair and CEO, Accenture, said in its earnings report.
Accenture reported record new bookings of $22.1 billion, a 13 percent increase in U.S. dollars from the second quarter last year, with consulting and managed services bookings of $10.7 billion and $11.4 billion, respectively.
“Our record bookings reflect the confidence and trust that our clients have in us to create value and help them transform at speed. We are also taking steps to lower our costs in fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead,” Julie Sweet said.
Accenture has initiated actions to streamline operations, transform non-billable corporate functions and consolidate office space to reduce costs in the second quarter of fiscal 2023.
Accenture recorded $244 million in business optimization costs in the second quarter and expects to record costs of $1.5 billion through fiscal 2024.
Accenture estimates $1.2 billion for severance and $300 million for consolidation of office space, with approximately $800 million expected in fiscal 2023 and $700 million in fiscal 2024.
