Accenture Cuts 11,000 Jobs as AI Restructuring Accelerates

Accenture, a global leader in professional services, has laid off more than 11,000 employees in the past quarter, marking one of the largest workforce reductions in its history. This move is part of a sweeping $865 million AI-driven restructuring program that reflects the growing impact of artificial intelligence on the consulting sector.ndtv+5

Why the Cuts?
The company’s CEO Julie Sweet explained that while Accenture is committed to upskilling its workforce for the AI era, employees whose skills cannot be adapted to new roles are being exited “on a compressed timeline.” The restructuring is intended to realign the company’s talent base with the rising demand for AI services and to streamline operations in response to slowing demand in traditional consulting.cnbc+3

Financial Performance Remains Strong
Despite these cuts, Accenture reported robust financial results for the fiscal year ending August 31, 2025. Revenues rose 7% year-over-year to $17.6 billion in the fourth quarter, surpassing expectations. Adjusted earnings per share came in at $3.03, above analyst forecasts. The company continues to invest the anticipated $1 billion in savings from restructuring into expanding its AI workforce and technologies.finance.yahoo+6

Industry Trend: AI Driving Workforce Change
Accenture’s actions reflect a broader trend in the tech and consulting industries. Globally, AI adoption is cited as a primary driver of workforce reductions, especially impacting entry-level and repetitive task roles. The company has retrained more than 550,000 employees in generative AI fundamentals and increased its base of AI and data professionals to 77,000. By fiscal year-end, Accenture secured $5.9 billion in new generative AI bookings—over double the previous year.upskillist+6

Other major firms, including Microsoft and Meta, are also reshaping their hiring and reskilling strategies to emphasize AI capabilities, in some cases offsetting layoffs with aggressive AI-focused recruitment.fortune+2

Human Impact and Future Outlook
While Accenture continues to hire in high-growth AI areas, the “compressed timeline” for exits signals urgency—and raises questions about the limits of reskilling in a fast-changing landscape. Company leaders and industry observers expect AI’s role in consulting and tech to expand, with workforce changes continuing through at least late 2025.timesofindia.indiatimes+4

Conclusion
Accenture’s restructuring highlights both the promise and the disruption of AI in global consulting. The financial results underscore that strategic pivots toward AI can create shareholder value, even amidst significant human cost. As competitors follow similar paths, the industry is poised for transformation where adaptability and digital skills are more critical than ever.channelinsider+12