Global consulting firm Accenture has reduced its workforce by more than 11,000 employees in the past three months as part of a strategic push toward artificial intelligence and operational efficiencies, according to recent disclosures. The layoffs, which bring the company's headcount down to approximately 779,000 from 791,000 at the end of the prior quarter, are tied to an $865 million restructuring program aimed at aligning talent with emerging AI demands.
The cuts, which began earlier this year and are expected to continue through November, reflect a "compressed timeline" for exiting employees where reskilling is not deemed viable for the skills required in an AI-centric future, CEO Julie Sweet explained during the company's earnings call. "We are exiting on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need," Sweet said, emphasising that upskilling remains the primary focus of Accenture's talent strategy. She added that the company is also driving efficiencies through AI to create more investment capacity.
CFO Angie Park detailed the restructuring during the call, noting that the six-month business optimization program includes $615 million in charges for the fourth quarter—comprising $344 million in severance costs and $271 million in asset impairments—with an additional $250 million anticipated in the first quarter of fiscal 2026. These actions are projected to generate over $1 billion in savings, which will be reinvested in the business and workforce. Park also highlighted that the program involves the divestiture of two non-strategic acquisitions.
Despite the workforce reductions, Accenture plans to grow its headcount overall in fiscal 2026 across all markets, including the US and Europe, in response to anticipated demand. The company has significantly expanded its AI expertise, increasing its AI and data professionals from 40,000 in fiscal 2023 to 77,000 today, and has trained over 550,000 employees in generative AI fundamentals.
The layoffs come amid robust financial performance, as Accenture reported fourth-quarter fiscal 2025 revenues of $17.6 billion, marking a 7% increase in U.S. dollars and 4.5% in local currency compared to the same period last year. New bookings for the quarter reached $21.3 billion, up 6% in U.S. dollars, with a book-to-bill ratio of 1.2. Generative AI contributed $1.8 billion in new bookings for the quarter.
For the full fiscal year 2025, revenues totaled $69.7 billion, a 7% rise in both U.S. dollars and local currency. Annual new bookings were $80.6 billion, down 1% year-over-year, but generative AI bookings surged to $5.9 billion. Adjusted operating margin expanded by 10 basis points to 15.6%.
Looking ahead, Accenture forecasts fiscal 2026 revenue growth of 2% to 5% in local currency, with first-quarter revenues projected between $18.1 billion and $18.75 billion, implying 1% to 5% growth. Sweet expressed optimism about the company's position, stating, "I am very pleased with our 7% growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with AI."
