Accenture has announced to reduce its workforce by 400 jobs in Ireland
By The Headlines, March 23, 2023 | 11:49 PM
Accenture recently declared that it had to lay off up to 400 staff in its Irish operations due to financial difficulties.
Following a careful deliberation of the company's operations in the region, a spokesperson declared that they will commence with a collective employee consultation regarding proposed redundancy plans.
Accenture recently announced a decrease in both its annual revenue and profit forecasts, and additionally revealed that it would be reducing its workforce by almost 2.5%. This is a clear indication of how the global economic downturn has had an adverse effect on corporate spending on IT services.
Out of the 19,000 roles that will be eliminated, more than half are in non-billable corporate divisions including Human Resources, finance and administration.
Accenture has an immense talent pool of over 6,500 individuals in Ireland.
Our management consultancy is tailored to tech businesses, helping them in the development and implementation of their strategies. We strive to offer customised solutions that will have a long-term positive effect on your company.
As of late last year, sadly, thousands of tech workers have been laid off due to the current economic environment. With inflation and interest rates being on the rise, a decrease in demand has resulted in unfortunately high levels of job losses within the technology sector.
It is apparent that today's choice was influenced by the recent cuts in the tech sector.
The Department of Enterprise expressed concern over the announcement and promised to do its utmost to make sure that all affected employees are provided with state support. They emphasized that they will work with the company to ensure this.
IDA will stay closely connected with Accenture as they move through their discussions with personnel.
At the end of last month, Cognizant Technology Solutions indicated a "reduced" rise in bookings for 2022 and estimated revenue to be less than anticipated. This IT services company estimates its next quarter revenue to be below expected figures.
Both IBM and Tata Consultancy Services have reported lower demand from European clients due to the Ukraine conflict, resulting in slower growth.
Accenture has revised its expected annual revenue growth from 8-11% to a more modest 8-10%. Nevertheless, this still suggests an optimistic outlook for the company.
The earnings per share estimates have been revised in the $10.84 to $11.06 range as opposed to the original forecast of $11.20 to $11.52.
Despite the uncertain economic times, companies have kept their focus on executing quick & efficient transformations - as stated by CEO in the post-earnings call. These changes are made with the purpose of becoming more agile & lean.
A survey of 1,000 IT decision-makers conducted by Enterprise Technology Research found that they intend to cut their 2023 budget growth.
The growth expectations for October 2022 have been revised downwards from 5.6% to 3.4%.
Erik Bradley, Chief Engagement Strategist at the technology market research firm reported that their data on the IT Consulting and Outsourced IT potential spending is close to zero. This indicates a promising gesture in terms of future technology investment.
To summarise, the data points to a challenging environment for consulting firms in the near future," he continued. According to Reuters reporting, this could be a difficult road ahead.