McKinsey is reportedly planning to cut up to 2,000 non-consulting jobs, which would be one of its largest rounds of layoffs. Along with McKinsey, numerous other companies in the tech industry have recently slashed their workforces due to inflation, higher interest rates, and concerns about a recession. Among those that have laid off employees are Atlassian, HP, and Zscaler. In contrast to these layoffs, Accenture is planning to cut 2.5% of its workforce, or about 19,000 jobs, to streamline its operations and reduce costs. The company will spend $1.2 billion in severance to achieve the job cuts in the next 18 months and another $300 million to consolidate its office space. Despite the layoffs, Accenture continues to hire and has increased its workforce by 38,000 over the past year.
Accenture to Cut 19,000 Jobs Globally in Cost-Cutting Move
Accenture, a professional services and consulting firm, has announced plans to reduce its workforce by 2.5%, amounting to around 19,000 jobs. The company said it would spend $1.2 billion in severance to achieve the job cuts in the next 18 months and another $300 million to consolidate its office space. Over half of the eliminated roles would be from back-office staff. Accenture has 738,000 employees worldwide and stated in its latest quarterly report that it continues to hire but is taking steps to streamline its operations to cut costs. The firm has downgraded its revenue growth outlook for the 2023 fiscal year to between 8% and 10% from its previous estimate of between 8% and 11%, citing significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact its business.
Accenture’s job cuts come as its rivals are also trying to trim costs. KPMG, a consulting giant, has reportedly announced an internal memo to cut almost 2% of its US workforce as it anticipated waning client demand.
McKinsey to Cut Up to 2,000 Non-Consulting Jobs, Bloomberg Reports
According to Bloomberg, McKinsey may cut up to 2,000 non-consulting staff in one of its largest layoffs to date. Meanwhile, layoffs have been widespread in the tech industry as inflation, higher interest rates, and recession fears have prompted a decrease in advertising and consumer spending. Atlassian, HP, and Zscaler have all recently cut their headcounts in the MSP industry.
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