Accenture Lay off 19000 Workers due to Lower IT Spending by Corporates preparing to retrench

Accenture, one of the largest IT companies, has reduced its annual revenue and profit forecast. The company has told that it will reduce its workforce by about 2.5 percent. About 19,000 workers will be laid off from Accenture. This is another sign of weakness in the global economy. Due to this, the expenditure on IT services is being reduced in many sectors.

More than half of the workers laid off by the company will be from corporate functions that are not billed. Accenture expects annual revenue growth of 8-10 per cent. company had earlier given an estimate of 8-11 per cent for this. Last month, Accenture’s rival Cognizant reported slowing growth in IT services deals. Cognizant’s Q1 revenue forecast came in below market expectations.

Accenture said it expects earnings per share of $10.84 to $11.06. The company had earlier given an estimate of $11.20 to $11.52 for it. American job search platform Indeed has also informed about reducing its workforce by 15 percent. Indeed’s chief executive, Chris Hyams, has taken a 25 percent reduction in his base pay. He said that the size of the company was huge.

Earlier this week the e-commerce and tech company Amazon had told that it would lay off 9,000 workers to deal with the instability in the economy and improve its functioning. Till a few years ago, Amazon was known as a company providing a large number of jobs. It has laid off thousands of workers in the last few months. The company has about three lakh workers. The company plans to lay off significant numbers of workers from its profitable cloud and advertising divisions. Apart from this, staff will also be reduced from its streaming division Twitch. Late last year, Amazon laid off workers from its e-commerce, devices and HR divisions. Since the end of last year, many companies in the technology sector have reduced their workforce. These include Microsoft involved in large software companies and Alphabet, which runs Internet search engine Google.