Accenture will cut 11,000 jobs in a $865M restructure, urging staff to reskill for AI as new bookings soar to $5.1B despite IT contract losses.
👉 Background: Accenture was founded in 1989 and has grown into a global IT consulting giant with nearly 800,000 employees worldwide. Yep, it has more staff than the population of Tasmania.
👉 What happened: After the US government cut many IT contract, Accenture announced an $865 million restructuring plan. As a result, Accenture has announced 11,000 job cuts in the last three months.
👉 What else: While making these big cuts, Accenture secured $5.1 billion USD in new AI project bookings, which is nearly double last year. Despite the AI momentum, Accenture warned staff to retrain for AI or risk redundancy.
What's the key learning?
💡In professional services firms, the main asset isn’t software or factories or machines. It’s the skills and expertise of staff that matters most.
💡Accenture’s message is clear: reskill for AI or risk obsolescence. According to IBM, 40% of the global workforce will need retraining within three years.
💡If staff can’t adapt to AI and automation, their skills and the firm’s “assets” lose value. And in this industry, human capital is everything.
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