Accenture has laid off over 11,000 members of staff as part of a restructuring program.
The company's 791,000 employees has been cut down to 779,000 in the past three months, and Accenture might not be done yet.
With AI continuing to dominate the tech space, the IT consulting group has introduced AI training for staff to keep up with this new era of technology.
Accenture has warned staff who cannot keep up with the new training could join the thousands already laid off.
In a discussion with analysts, Accenture CEO Julie Sweet provided further insights into the restructuring:
“We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need.
We are investing in upskilling our reinventors, which is our primary strategy. Those we cannot reskill will be exited.
Indeed, Accenture followed this announcement with the news that it is set to acquire Aidemy Inc, a reskilling specialist.
In doing so, the company is looking to strengthen its own reskilling and learning service, LearnVantage, and seemingly double-down on its commitment to fully embracing AI.
The acquisition will also enhance Accenture’s end-to-end AI support – from talent development to long-term adoption – by leveraging Aidemy’s expertise in building and operating AI systems across diverse industries.
Unpacking the Restructure
The layoffs are part of an $865MN restructuring program for the year ahead, which aims to improve efficiency within the company.
However, despite the restructuring, plans for the new fiscal year expect the employee headcount to grow, particularly in areas such as AI and digital services.
Accenture’s fourth quarter report revealed that its revenue had increased by seven percent compared to the previous fiscal year, with Sweet suggesting it demonstrated the company’s “unique ability to deliver for our clients as they seek our help to reinvent and lead with AI”.