Accenture has lowered its annual revenue and profit forecasts and plans to cut about 2.5% of its workforce, or 19,000 jobs, seemingly in response to a changing global economic outlook and the potential for declining IT. The company said more than half of the job cuts will be in non-billable corporate functions.
Why it matters: Accenture’s announcement reflects the current state of the IT services sector and highlights the impact of the global economic outlook on corporate spending. The decision to cut jobs and lower its revenue and profit forecasts is an indicator that companies are being cautious with their IT spending, and this trend may continue to affect the technology industry.
- This news also serves as a warning for other IT services firms to prepare for a difficult environment ahead and to adjust their growth strategies accordingly.
- Since late last year, the tech sector has laid off hundreds of thousands of employees.
- A survey of more than 1,000 IT decision-makers by U.S.-based Enterprise Technology Research said they plan to reduce their 2023 budget growth.
