Accenture Cites AI in 11,000 Worker Layoff

Accenture has laid off around 11,000 employees in the quarter ending Aug. 30 as it shifts focus toward jobs linked to generative AI.

By September, the company’s total workforce dropped to 779,000 from 791,000. The cuts show Accenture’s plan to train workers for AI-based roles and remove jobs where upskilling is not practical.

CEO Julie Sweet told investors that the company is speeding up its move toward AI-powered operations to better serve clients who are transforming their businesses.

Some job cuts are also believed to be tied to the loss of U.S. federal government contracts. Reports suggest that programs like the U.S. Department of Government Efficiency (DOGE) have affected Accenture’s revenue. Government contracts earlier made up about 8% of its total income.

The company has set aside around $865 million for restructuring in fiscal 2025, mainly to cover severance and related costs.

During the earnings call, the CEO said the company is letting go of people quickly in areas where retraining is not feasible. She added that Accenture’s main focus is on upskilling employees who can adapt to new technologies, while those who cannot will be phased out.

Accenture said it is investing heavily in employee training to avoid large-scale layoffs in the future. Since 2023, it has trained more than 550,000 workers in generative AI. The number of its AI and data experts has also doubled to 77,000 during this period.