Accenture layoffs coming? Firm to book charges, exit businesses in major reset

Accenture is cutting staff, shedding assets, and restructuring parts of its business as it braces for sharply slower growth in fiscal 2026, underscoring deepening strain across the global IT sector despite continued investment in AI and cloud.

On its September 25 earnings call, CEO Julie Sweet said the company is “exiting, on a compressed timeline, people where re-skilling is not a viable path for the skills we need.”

Accenture’s workforce fell by about 11,000 in Q4FY25, dropping from 790,000 to 779,000 employees.

The company has launched a business optimization program with two parts: a rapid “talent rotation,” which covers severance costs tied to accelerated headcount reductions, and the divestiture of two acquisitions no longer aligned with its strategic priorities.

CFO Angie Park said Accenture expects to record about $250 million in charges in Q1 FY26, totaling $865 million over six months, reflecting both severance expenses and asset impairments. “These actions will result in cost savings, which will be reinvested in our people and business,” she said.

The retrenchments come amid moderating growth and weaker client demand. “We continue to see pockets of strong AI-driven demand, [but] overall growth in our key markets is moderating,” Sweet said.

Accenture now projects FY26 revenue growth of just 2–5% in local currency, compared with 7% last year. The forecast excludes a 1–1.5% drag from its U.S. federal business, hit by disruptions under the new Department of Government Efficiency (DOGE) led by Elon Musk, which has overhauled IT procurement.

Despite the cuts, Accenture said it will continue hiring and reskilling in priority areas, with headcount still expected to grow in the U.S. and Europe during FY26.

The Nasdaq-listed firm’s shares fell about 2% after the earnings announcement, as investors reacted to its lower growth outlook. Its retrenchment mirrors broader industry pressures—Tata Consultancy Services, India’s largest IT firm, has already laid off more than 12,000 employees this year citing skill mismatches and cooling demand.