IT firm Accenture cuts over 11,000 jobs in three months; Warns of more layoffs amid AI push
New Delhi: Global IT consulting firm Accenture has laid off more than 11,000 employees over the past three months and has warned of further job cuts, citing the accelerating impact of artificial intelligence (AI) on its operations.
The Dublin-based firm unveiled details of an $865 million (around Rs 7,669 crore) restructuring programme, warning analysts that if staff cannot be retrained fast enough, further reductions will be inevitable, as reported by India Today on Sunday.
The company’s leadership, led by chief executive Julie Sweet, has reportedly made it clear that reskilling remains the preferred option, but not all employees will make the cut.
“We are moving on a compressed timeline,” Sweet told investors on a call. “Where reskilling simply isn’t a viable path, we are making the difficult choice to exit people," she said, as per the reports.
By the end of August, Accenture’s global workforce had fallen to 7,79,000, down from 7,91,000 just three months earlier. It was reported that severance and related expenses accounted for $615 million in the last quarter, with an additional $250 million anticipated in the current quarter.
Despite the cuts, Accenture maintained that it would continue to expand operating profit margins at its historic annual rate of at least 10 basis points in the next fiscal year.
While trimming its human workforce, Accenture is simultaneously ramping up investment in generative AI. In the recently closed financial year, AI-related projects accounted for $5.1 billion in new bookings, a significant increase from $3 billion the previous year.
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Vijay unable to prove majority, not invited for CM oath ceremony: Sources
Chennai: Actor-politician Vijay has reportedly not been invited to take oath as Chief Minister of Tamil Nadu after failing to demonstrate support from the required number of MLAs, sources in Raj Bhavan said.
According to media reports that quoted sources in the office of R.N. Ravi Arlekar, Vijay could not prove the backing of 118 legislators, the majority mark in the 234-member Tamil Nadu Assembly.
Despite last-minute efforts to secure support from the Viduthalai Chiruthaigal Katchi (VCK), Amma Makkal Munnetra Kazagam (AMMK), and an IUML legislator, Vijay reportedly managed support from only 116 MLAs, falling short by two members.
Sources said Vijay failed to submit letters of support from the VCK and the Indian Union Muslim League (IUML).
Later, the IUML issued a statement clarifying that it was not part of the TVK-led alliance.
Meanwhile, AMMK leader T.T.V. Dhinakaran is also said to have informed the Governor that his party would support the All India Anna Dravida Munnetra Kazhagam (AIADMK) instead.
Earlier in the evening, Vijay had met Governor Arlekar and staked claim to form the government, stating that he enjoyed the support of 118 MLAs.
