Accenture cuts 25,000 jobs worldwide

  •   28/08/2020 - 12h08
  •   HARMANT Adeline

It is to further reduce its costs that the Accenture group decided to launch a transformation plan that will end with the elimination of 25,000 positions worldwide, which represents more than 5% of the company's workforce. The skills and performance of employees will be used as the criteria for the order of departure.

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Accenture cuts 25,000 jobs worldwide
Image copyright: Michael Gray

A decision made to deal with the current crisis:

The Accenture group has of course suffered the effects of the Covid-19 crisis like other companies in this sector and some of its competitors have had to set up similar plans such as VMWare, Dell or Mozilla.

The first wave of departures will take place at the beginning of September with criteria for the order of departure of employees based on their performance and skill level. Last June and after the publication of the company's third quarter results, the company's CEO had let this idea slip by explaining : "As I said before, we have identified other areas of profitability that are impacting part of the workforce.»

By July, 900 jobs had already been lost in the United Kingdom due to the slowdown in market demand caused by the health crisis. The company had indeed had to identify the structural costs it was facing.

 

Optimistic forecasts for the group in the face of the current crisis :

The Accenture group thus decided to implement solutions to achieve savings by starting to cut its travel budgets, reduce the number of subcontractors and limit hiring.

The group's CEO, Julie Sweet, was optimistic with investors in mid-March and as the US prepared for budget cuts due to the coronavirus pandemic. She then assured that the group was well placed to overcome this crisis, saying: "The abrupt shift to digital in almost every work environment will enable the group to become one of the largest technology providers worldwide and I believe we will be in a strong position as we enter this chapter."

It is therefore to be believed that the company changed its mind after its quarterly results.

 

An ambitious acquisition policy :

The Chief Financial Officer of Accenture Group also commented on this news by explaining: "As we have emerged from the last financial crisis, we have gained market share and we believe that we will have opportunities in the long term by staying close to our clients".

And indeed we can see an ambitious M&A policy carried out by the group even during the crisis with more than 20 contracts signed in the last 12 months. It is in particular these takeovers that are creating controversy among employees whose jobs are threatened.