Daily Crunch: In SEC filing, Accenture reveals plans to dismiss 19,000 workers over the next 18 months
In a recent SEC filing, management consulting and professional services firm Accenture has revealed plans to dismiss around 19,000 workers over the next 18 months. The decision comes as a response to the company’s plans for an organizational restructuring.
The restructuring is aimed at transforming Accenture’s business operations to focus more on digital services, cloud computing, and cybersecurity. However, it will also lead to a significant decrease in the company’s workforce.
According to the SEC filing, the company expects to incur approximately $1.3 billion in severance payments related to the job cuts. This cost will be mainly incurred over the next two quarters.
The company’s plan to cut jobs has raised concerns among its employees, as well as industry experts. Accenture’s decision to let go of such a large number of workers is a major move for the industry, and it could set a precedent for other companies in the consulting and professional services sector.
However, Accenture’s management has assured its employees that the job cuts are part of a long-term strategy for the company to remain competitive in a rapidly changing landscape. The shift towards digital services and cybersecurity is necessitated by the ongoing pandemic, which has forced many organizations to adopt remote work and digital solutions.
Despite the concerns raised, Accenture’s move could be seen as a sign of the times, as companies across industries weigh cost-cutting measures in response to the ongoing economic uncertainty. The pandemic has disrupted businesses worldwide, and many are now looking to streamline their operations to remain competitive in the post-pandemic world.
In conclusion, Accenture’s plans to dismiss 19,000 workers over the next 18 months are a major development for the industry. While the move could have repercussions for its employees and competitors, the company’s management insists it is part of a long-term strategy to remain competitive in the evolving landscape. As the pandemic continues to impact businesses worldwide, cost-cutting measures will likely become more prevalent in the months ahead.