Accenture Plc is laying off 19,000 workers. This represents 2.5% of its workforce.
This follows the company’s reduction of its annual revenue and profit forecasts.
Accenture said on Thursday that more than half of the job cuts will be in non-billable corporate functions, sending its stock up 6.4%.
Due to a demand downturn caused by high inflation and rising interest rates, the tech sector has laid off hundreds of thousands of employees since late last year.
Accenture now anticipates annual revenue growth of 8% to 10%, down from its previous projection of 8% to 11%.
Earnings per share are expected to be in the $10.84 to $11.06 range, down from $11.20 to $11.52 previously.
Severance costs are expected to total $1.2 billion in fiscal 2023 and 2024.
“Companies remain focused on executing compressed transformations,” Chief Executive Julie Sweet said explaining how companies are adjusting to the economic downturn
According to a survey of over 1,000 IT decision-makers conducted by US Enterprise Technology Research, they intend to reduce their budget growth in 2023.
The forecasted growth rate is now 3.4%, down from 5.6% in October 2022.
