Accenture to lay off 19,000 employees, trims forecasts

Accenture Plc on Thursday lowered its annual income and revenue forecasts and mentioned it might reduce about 2.5% of workforce, or 19,000 jobs, the most recent signal that the worsening world financial outlook was sapping company spending on IT companies.

More than half of the layoffs will have an effect on employees at its non-billable company features, the corporate mentioned, sending its shares up greater than 4% earlier than the bell.

Accenture now expects annual income progress to be between 8% and 10% in comparison with the earlier projection of 8% to 11% enhance.

Last month, rival Cognizant Technology Solutions pointed to “muted” progress in bookings, or the offers IT companies companies have within the pipeline, in 2022 after its first-quarter income forecast got here in beneath market expectations.

Accenture mentioned it now expects earnings per share to be within the vary of $10.84 to $11.06 in comparison with $11.20 to $11.52 beforehand.

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