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Accenture to lay off employees; 5% staff to be impacted in India

Julie Sweet, Accenture CEO said that in a normal year 5 per cent of employees are transitioned out and hiring takes place to replace them

twitter-logoBusinessToday.In | August 28, 2020 | Updated 13:26 IST
Accenture to lay off employees; 5% staff to be impacted in India

Accenture is likely to lay off 5 per cent of its staff in India, impacting several thousand employees, after the current appraisal cycle wraps up. India is Accenture's largest base with a count of 2 lakh of its 5 lakh employees worldwide.

Julie Sweet, Accenture CEO, told in an internal staff meeting that was streamed online that in a normal year, 5 per cent of employees are transitioned out and hiring takes place to replace them. "Right now, we're not in a demand scenario, so if we manage out the same percentage of people and don't replace them, it allows us to continue to invest and preserve some people who have lower chargeability for when the market comes back," she said, according to the Australian Financial Review (AFR). AFR said that Accenture is looking to cut 5 per cent of its global workforce.

An Accenture spokesperson said, "Every year, as part of our performance process, we have conversations with our people about how they are performing, areas for improvement, their potential to progress, and whether they are a long term fit for Accenture. This year, across all parts of our business and all career levels, we will identify approximately 5% of our people as our lowest performers, and these individuals will transition out of Accenture. This is consistent with our actions each year." The spokesperson added that ensuring they have the right people with the right skills to best serve their clients is crucial for their business long term.

Like most IT companies, Accenture too has seen a collapse of its revenue. In the last quarter its revenue grew 1.3 per cent.

The company is reportedly cutting jobs in the UK and Australia as well. Around 900 employees are likely to be impacted in the UK while around 180 are likely to be impacted in Australia.

Also read: Trump's new H-1B order leaves no impact on Indian IT firms

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