CEO Morning Brief

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

Publish date: Fri, 24 Mar 2023, 09:00 AM
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TheEdge CEO Morning Brief

(March 23): Accenture Plc on Thursday (March 23) 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 US$10.84 to US$11.06 compared to US$11.20 to US$11.52 previously.

Source: TheEdge - 24 Mar 2023

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