UK jobs at risk as consultancy giant Accenture cuts 19,000 staff amid global economy fears
Accenture is cutting 19,000 of its global workforce in a culling that puts hundreds of jobs in the UK at risk.
The consultancy giant, once part of accounting firm Arthur Andersen, said it will cut 2.5 percent of its 738,000 employees over the next 18 months.
It’s the latest sign that concerns about the global economic outlook are undermining corporate spending on IT services and consulting. About 300 of Accenture’s 11,000 UK employees are at risk of losing their jobs.
Cut jobs: Accenture, once part of accounting firm Arthur Andersen, said it will cut 2.5% of its 738,000 employees over the next 18 months
The Dublin-based group, which is listed in New York, said it expects to face layoff costs of nearly £1bn and a further £250m in costs to consolidate its office space.
The job losses follow a period of rapid growth in recent years as large companies sought advice on technology projects.
A recruitment wave followed, with Accenture hiring more than 230,000 employees over the past three years.
Other advisory groups have also announced plans to cut jobs, with McKinsey laying off up to 2,000 of its 45,000 employees.
The cuts come as technology companies lay off hundreds of thousands of workers.
The job losses are the result of high inflation and rising interest rates taking a toll on the industry.
Accenture also reported a 5 percent increase in revenue to £12.8 billion for the three months to February, but profits fell 5.8 percent to £1.5 billion.
Shares of the company rose more than 5 percent yesterday.