Accenture plans to slash 19,000 jobs worldwide as it attempts to cut costs amid a gloomy economic picture.
The Irish-American professional services company said in a Thursday filing that it would spend $1.2 billion in severance to cut 2.5% of its workforce over the next 18 months, and another $300 million by consolidating its office space.
More than half of the axed roles would affect its back-office staff, the company said.
(ACN) said in its latest quarterly report to the Securities and Exchange Commission that it continues to hire, but had “initiated actions to streamline [its] operations and transform our non-billable corporate functions to reduce costs.”
The $167 billion company downgraded its revenue growth outlook for the 2023 fiscal year to between 8% and 10%, from its previous estimate of between 8% and 11%.
Shares in Accenture rose 3.9% to hit $263 apiece in early trade after its announcement.
The New York-listed company is down by more than 5% year over year.
Accenture’s rivals are also trying to trim their costs. Consulting giant KPMG announced in an internal memo last month that it would cut almost 2% of its US workforce as it anticipated a wane in client demand, according to a Financial Times report.
McKinsey could also slash as many as 2,000 non-consulting staff in one of its biggest round of layoffs ever, Bloomberg reported last month, citing unnamed sources close to the matter.