Accenture cuts 19000 jobs, delays freshers hiring and morehow IT company is saving cost

By Divyanshi SharmaThe tech sector has been going through a turbulent time lately and many companies have announced large-scale layoffs in the past. Right from tech giants like Google, Meta and Amazon to relatively newer companies like Dunzo and ShareChat, layoffs and other cost-cutting measures are being carried out at a rapid pace. IT firm Accenture also made a lot of headlines for announcing its decision to let go of 19,000 people. The layoffs, moreover, won’t take place all at once. They will be announced over a period of 18 months and people who haven’t been assigned any task yet are expected to be let go first. The company is also implementing other measures in order to cut costs and survive in a tough economic environment.

Let’s take a look at how Accenture is taking steps to cut down costs in five points.

1. First thing’s first. The company announced 19,000 layoffs in March this year and also revealed that the layoffs won’t happen all at once. Instead, people will lose their jobs over the next 18 months. The company also added that the layoffs are a part of its cost-cutting measures. Another reason behind the layoffs that the company cited was overhiring. In the last couple of months, many companies have admitted to overhiring people during the pandemic when certain businesses boomed.

2. By laying off 19,000 employees, Accenture will be saying goodbye to 2.5 per cent of its global workforce. As for the company’s Indian employees, it is not yet clear how the move will affect them. As per a report by Economic Times, roughly 40 per cent of Accenture’s global workforce is operating from India.

3. The company has also delayed joining of freshers. We all know that every company incurs a certain cost the moment a new employee becomes a part of the organisation. Accenture, hence, is saving up on hiring costs and has delayed joining of many freshers for up to a period of one year. The company told Bloomberg that this decision is taken in the light of the fact that Accenture will not be needing the services of these employees as of now.

4. Since the layoffs at Accenture will be happening over a period of 18 months, reports suggest that employees are still in the dark about when will they be laid off or what procedures will be followed. India Today Tech previously reported that HRs at the company are preparing a list of candidates who can be laid off and the employees have no clue about the same.

5. Despite the layoffs, the company still has hundreds of job vacancies on LinkedIn. However, it is unclear if the company is actively hiring for these roles or not. In a regulatory filing, Accenture confirmed that it will ‘continue to hire, especially to support (their) strategic growth priorities’.