Accenture Cuts Jobs, Trims Forecasts on Worries of Lower It Spending

lower IT

Accenture Plc on Thursday lowered its annual revenue and profit forecasts and said it would cut about 2.5% of workforce, or 19,000 jobs, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services.

More than half of the layoffs will affect staff at its non-billable corporate functions, the company said, sending its shares up more than 4% before the bell.

Accenture now expects annual revenue growth to be between 8% and 10% compared to the previous projection of 8% to 11% increase.

Last month, rival Cognizant Technology Solutions pointed to “muted” growth in bookings, or the deals IT services firms have in the pipeline, in 2022 after its first-quarter revenue forecast came in below market expectations.

Accenture said it now expects earnings per share to be in the range of $10.84 to $11.06 compared to $11.20 to $11.52 previously.


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