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UK jobs at risk as Accenture cuts 19,000 staff around the world

ACCENTURE is axing 19,000 of its worldwide workforce in a cull that puts hundreds of jobs in the UK at risk.

The consultancy giant, once part of accountancy business Arthur Andersen, said it will cut 2.5pc of its 738,000 staff over the next 18 months.

It is the latest sign that concerns about the global economic outlook are sapping corporate spending on IT services and consulting. Around 300 of Accenture’s 11,000 UK staff could lose their jobs.

The Dublin-based group, which is listed in New York, said it expects to incur staff severance costs of close to £1bn and a further £250m of expenses from consolidating its office space.

The job cuts follow a period of rapid growth in recent years as major corporations sought advice on tech projects.

A hiring binge followed, with Accenture taking on more than 230,000 staff over the past three years.

Other consulting groups have also announced plans to axe jobs with McKinsey laying off up to 2,000 of its 45,000 staff. The retrenchment comes as tech companies lay off hundreds of thousands of employees.

The job cuts have been caused by high inflation and rising interest rates taking their toll on the sector.

Accenture also reported a 5pc rise in revenues to £12.8bn for the three months to February, but profit fell 5.8pc to £1.5bn.

The company’s shares surged more than 5pc yesterday.

CITY & FINANCE

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2023-03-24T07:00:00.0000000Z

2023-03-24T07:00:00.0000000Z

https://mailonline.pressreader.com/article/282737706080075

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