Global professional services company Accenture (opens in new tab) is laying off thousands of workers around the world, as the firm looks to improve its efficiency across the board.
According to the Australian Financial Review (opens in new tab) (AFR), Accenture CEO Julie Sweet held a virtual internal staff meeting, in which she explained the company identified some “real areas of efficiencies”, which “obviously” have headcount implications.
All in all, approximately 25,000 people around the world - accounting for the bottom five percent of underperformers - could soon be looking for a new employer.
“We went into the crisis with an overcapacity of people relative to demand,” the company said in a memo to workers that was obtained by The Guardian (opens in new tab).
“The crisis has caused additional strain on the business due to lower demand and reduced national attrition. In addition, we have identified structural costs that we need to address.”
Accenture’s (opens in new tab) revenue streams have suffered a serious hit as a result of the Covid-19 pandemic. According to a Times of India report (opens in new tab), the company’s revenue grew by 1.3 percent, well below all expectations and the firm reduced its revenue forecast for the fiscal year from 6-8 percent, down to 3-6 percent.
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