Accenture cuts jobs, trims forecasts on worries of lower IT spending
FILE PHOTO: Accenture PLC logo is seen on a smartphone in front of displayed same logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Accenture Plc on Thursday lowered its annual revenue and profit forecasts and said it would cut about 2.5 per cent of workforce, or 19,000 jobs, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services.
More than half of the layoffs will affect staff at its non-billable corporate functions, the company said, sending its shares up more than 4 per cent before the bell.
Accenture now expects annual revenue growth to be between 8 per cent and 10 per cent compared to the previous projection of 8 per cent to 11 per cent increase.
Last month, rival Cognizant Technology Solutions pointed to "muted" growth in bookings, or the deals IT services firms have in the pipeline, in 2022 after its first-quarter revenue forecast came in below market expectations.
Accenture said it now expects earnings per share to be in the range of $10.84 to $11.06 compared to $11.20 to $11.52 previously.
