Accenture is undergoing a significant transformation to prioritize AI. This year, the company will reduce its workforce by 12,000 employees. The layoffs are not a reflection of poor performance but rather due to a skills gap where some employees lack the necessary capabilities for AI roles. The focus is shifting towards emerging areas such as generative AI, cloud, and digital services. By August 2025, Accenture’s workforce is projected to decrease to 779,000 from 791,000 just months earlier. CEO Julie Sweet stated that the company is evolving in its operations and product offerings. The restructuring is expected to take six months and incur costs of approximately $865 million.
Employees unable to acquire AI skills will exit quickly, while others will receive training. This shift is prompted by clients’ preferences for smaller IT projects and reduced spending. Additionally, the company is divesting certain segments and discontinuing less successful acquisitions. Despite this, Accenture reported higher-than-anticipated profits last quarter but anticipates a slowdown in growth next year. On a positive note, Accenture is upskilling 500,000 employees in AI and is actively hiring in the US and Europe. All AI-related initiatives will be consolidated under a new division called ‘Reinvention Services,’ highlighting that while AI presents new opportunities, it also results in job losses for some employees. Workers must acquire AI skills to retain their positions.