Accenture's AI-Driven Restructuring: 11,000 Jobs Cut as Company Prioritizes AI Skills

If you can't use AI then it's bye bye, Accenture tells staff

ai-pocalypse AI is proving to be a gold mine for mega tech consultancy Accenture, but if staff can't use it, then it's time to pack up their desks. In its results for the 2025 fiscal year, which ended August 31, the consultancy shop said that it's been investing in staff training to get employees up to speed. But if they are in roles that can't be augmented by AI and can't learn new skills, then the exit door is open for them. It's all tied into a broader business reoptimization strategy that will result in one-time charges of $865 million over a two-quarter period. "We are investing in upskilling our reinventors, which is our primary strategy," said CEO Julie Sweet in an analyst's call [PDF]. "We are exiting on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need." Later, in response to a question about its business optimization plans, Sweet said, "Our number-one strategy is upskilling, given the skills we need, and we've had a lot of experience in upskilling, we're trying to, in a very compressed timeline, where we don't have a viable path for skilling, sort of exiting people so we can get more of the skills in we need." Overall, she said Accenture was increasing hiring globally for those with the requisite skill set. She claimed Accenture has a host of 77,000 trained AI professionals now on staff, up from 40,000 in 2023, along with 550,000 workers who have a basic knowledge of the technology. That said, Accenture is making serious money on selling its AI consulting services to customers. Sweet said that following the plan to invest heavily in AI in 2023, revenue from GenAI and agentic AI tripled from last fiscal year to $2.7 billion in FY'25, and bookings nearly doubled to $5.9 billion. One area in which the company is hurting is with US government contracts. Procurement from the government has dropped off after the new administration instituted cost cuts and that may hurt the company's bottom line, Sweet warned, but contracts are starting to pick up and the company's partnership with Palantir looks fruitful, she said. As for the upcoming changes in the H-1B tech visa scheme, Sweet said the company was in a good position. Around five percent of US staff are on H-1B visas and, barring any major changes in government policy, Accenture expects no problems. All in all, it wasn't a bad year for the tech consulting firm. Revenue for the year was up seven percent to $69.7 billion, while net income rose more than five percent to $7.8 billion, according to its income statement ®.

Accenture to 'exit' staff that cannot be retrained for age of AI

Accenture has reduced its global workforce by more than 11,000 in the past three months and warned staff that more would be asked to leave if they cannot be retrained for the age of artificial intelligence. The IT consulting group on Thursday detailed an $865mn restructuring programme and an outlook for the year ahead that reflects continuing sluggish corporate demand for consulting projects and a clampdown on spending within the US federal government. "We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need," chief executive Julie Sweet told analysts on a conference call. The company employed 779,000 people at the end of August, it said, down from 791,000 three months earlier, after beginning a round of lay-offs that will continue until the end of November. It did not say how many jobs had gone directly as a result of the restructuring, but said severance payments and other costs totalled $615mn in the quarter just ended and would be $250mn more in the current three-month period The cuts allowed Accenture to say it would continue to expand operating profit margins at its historic annual rate of at least 10 basis points in the next fiscal year, a target that some analysts had worried might have to be dropped given the tough industry conditions. While demand for large-scale digital transformation work continues to be strong, for much of the past two years companies have been wary about hiring consultants such as Accenture for shorter-term projects. The company said revenues grew 7 per cent to $69.7bn in the year to August, for a net income of $7.83bn, up 6 per cent. It predicted revenue growth would slow to between 2 and 5 per cent in the fiscal year just started. The range would have been a percentage point higher but for the clampdown on spending by the US federal government, which has historically accounted for about 8 per cent of Accenture's revenue. A cost-saving effort under the auspices of the Department of Government Efficiency, initially spearheaded by Elon Musk, has cancelled existing IT contracts and challenged other spending on consultants, while lay-offs across government has slowed the procurement process. Accenture said that generative AI projects accounted for $5.1bn of its new bookings in the year just ended, up from $3bn the year before. It said 77,000 of its workforce were now skilled AI or data professionals, up from 40,000 two years before. Sweet said that Accenture's headcount would grow again overall in the coming year. "We are investing in upskilling our reinventors, which is our primary strategy," she said. Accenture shares were down 1.5 per cent in early Wall Street trading on Thursday.

Accenture plans on 'exiting' staff who can't be reskilled on AI amid restructuring strategy

Tech consultancy Accenture has laid out plans to lay off staff that aren't able to reskill on artificial intelligence amid a broader restructuring strategy which will see the company prioritize AI efforts. Accenture CEO Julie Sweet said in a call Thursday that as advanced AI becomes "a part of everything we do" and the global professional services company continues to invest significantly in the area, it expects employees to "retrain and retool" at scale. "We are investing in upskilling our reinventors, which is our primary strategy," Sweet said. She explained that the company is "exiting on a compression timeline" people for whom reskilling isn't a "viable path." Sweet said Accenture had already reskilled 550,000 workers on the fundamentals of generative AI and outlined a six-month $865 million business optimization program, which detailed costs associated with severance and headcount reductions. "We expect savings of over $1 billion from our business optimization program, which we expect that we will reinvest in our business and in our people because it's so important for our future growth and so we expect to reinvest that while still delivering modest margin expansion," Accenture Chief Financial Officer Angie Park said. Alongside cuts, the company is continuing to hire and has beefed up its AI talent with 77,000 employed AI and data professionals in 2025, up from 40,000 in 2023. Sweet said its also expecting to increase the company's headcount in the next financial year across markets including the U.S. and Europe. "Our number-one strategy is upskilling, given the skills we need, and we've had a lot of experience in upskilling, we're trying to, in a very compressed timeline, where we don't have a viable path for skilling, sort of exiting people so we can get more of the skills in we need," Sweet added. The company reported revenues of $69.7 billion this year, a growth of 7% from the prior year. In an interview with CNBC's "Squawk on the Street," Sweet pinned this growth on massive client demand to deploy AI across organizations.

Accenture to 'exit' staff who cannot be retrained for age of AI

Gift 5 articles to anyone you choose each month when you subscribe. Accenture has reduced its global workforce by more than 11,000 in the past three months and warned staff that more would be asked to leave if they cannot be retrained for the age of artificial intelligence. The IT consulting group detailed a $US865 million ($1.3 billion) restructuring program and an outlook for the year ahead that reflects continuing sluggish corporate demand for consulting projects and a clampdown on spending within the US federal government.

'You are just an ID number': Startup founder shares blunt advice as Accenture lays off 11,000 employees

Accenture has laid off over 11,000 employees, largely impacting those unsuited for AI reskilling, as part of its AI-driven restructuring. This initiative, projected to save over $1 billion, highlights the urgent need for professionals to cultivate irreplaceable skills like creativity and strategy for future job security. Accenture's decision to lay off 11,000 employees worldwide has once again sparked debate on the future of work in an AI-driven economy. While the company says the move is part of its restructuring to build an AI-ready workforce, the job cuts have left many professionals questioning their own security. Weighing in on the issue, Startup CA founder Meenal Goel shared a blunt message on LinkedIn: "You are just an ID number, and AI does not care about that." Her post has resonated with many as it underlines a hard truth -- workers who perform tasks that can be easily replaced by machines face the highest risk, making adaptability and human-centered skills the key to staying relevant. Reacting to the development, Startup CA founder Meenal Goel shared her perspective on LinkedIn. She wrote: "You are just an Employee ID, and AI does not care about that." Her post underlined the growing need for workers to adapt in a fast-changing job market. She added, "The message is clear, the more replaceable your work is, the more vulnerable you are. The way forward is to adapt and build skills that AI cannot easily replicate, like creativity, strategy, and human judgment. In this new economy, relevance is the only real job security." Commenting on the post, one user said: "Accenture's layoffs are a reminder that no job is truly safe in the AI era. Even big brands aren't immune from restructuring when efficiency is at stake. Upskilling is no longer optional, it's survival." The company is cutting costs as part of its AI transition. Accenture CEO Julie Sweet told analysts that it is "exiting employees" in areas where reskilling is not possible. "We are exiting on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need," she said. Accenture reported that its global headcount dropped from 791,000 to 779,000 between May and August. The layoffs are expected to continue until November 2025, with total severance and restructuring measures projected to save the company over $1 billion. Chief Financial Officer Angie Park said Accenture will also divest two acquisitions as part of a "rapid talent rotation" plan. "These actions will result in cost savings which will be reinvested in our people and our business," she said. Even as it trims traditional roles, Accenture is investing heavily in artificial intelligence. The company has doubled its AI and data specialist workforce to 77,000 since 2023 and trained more than 550,000 employees in generative AI. Sweet said, "Advanced AI is becoming a part of everything we do," describing the technology as "expansionary" rather than "deflationary". For the June-August quarter of fiscal 2025, the company posted a 7 per cent rise in revenue to $17.6 billion, beating market forecasts. Sweet said the results reflected Accenture's "unique ability to deliver for clients as they seek our help to reinvent and lead with AI." Accenture's move follows a broader trend in the tech sector, where companies including Meta and Microsoft are reducing conventional roles and expanding AI-related teams. For professionals, the message aligns with Goel's warning: job security depends on skills that AI cannot easily replace.