Accenture Cuts 11,000 Jobs in $865M AI Restructuring

Accenture has initiated a sweeping $865 million restructuring program, resulting in the layoff of 11,000 employeesbetween May and August 2025, with further job reductions anticipated. The move is a strategic effort to pivot the company's workforce and services toward high-growth digital and AI capabilities.

The layoffs reduced the global headcount from 791,000 to 779,000. Leadership has stressed that this is not merely a cost-cutting measure but a reallocation of resources. The funds saved from severance and divestitures will be immediately reinvested into workforce training and enhancing operational efficiency.

The firm has demonstrated its commitment to the AI transition, booking $5.1 billion in new AI services contracts in the last quarter. This pivot comes with a strict mandate for employees: "exit or retrain." To date, approximately 77,000 staff members have been upskilled in crucial AI and data capabilities.

While Accenture surpassed expectations with $17.6 billion in Q4 revenue and secured $21.3 billion in new bookings, it faces market pressures. The company issued a softer full-year revenue growth forecast of 2% to 5% for FY2026, citing weaker corporate consulting demand and reduced U.S. federal contract spending. The restructuring charges already total $615 million for Q4, with an additional $250 million expected next quarter.

CEO Julie Sweet addressed the impact of Trump's $100,000 H-1B visa fee, stating it would have limited effect, as H-1B holders constitute only 5% of its U.S. workforce. This strategic repositioning, following 19,000 layoffs in 2023, confirms Accenture's focus on delivering leaner, more AI-first solutions to clients through automation and specialized expertise.