Accenture Plans Major Restructuring: To Exit Businesses and Book Charges Amid Layoff Fears

As it prepares for significantly slower growth in fiscal 2026, Accenture is laying off employees, selling off assets, and restructuring some aspects of its company. This highlights the growing burden on the global IT industry despite ongoing investments in cloud and artificial intelligence.

CEO Julie Sweet stated on the company’s September 25 earnings call that the company is letting go of employees on a shortened schedule when retraining is not a practical option for the skills the company requires.

Although she did not reveal how many people were laid off, Accenture’s employment decreased by about 7,000 employees in the fourth quarter of FY25, bringing its total headcount down to about 770,000.

Accenture’s Business Optimisation Programme

The company has started a business optimisation programme that consists of two parts: the divestment of two acquisitions that are no longer in line with its strategic aims and a rapid “talent rotation” that covers severance costs associated with accelerated workforce reductions.

According to CFO Angie Park, Accenture anticipates charging roughly $250 million in Q1 FY26, or $865 million over six months, which will include both asset impairments and severance costs.

She went on to say that these steps will save money, which will be used to support the company’s workforce and operations. The layoffs coincide with slowing growth and declining customer demand. “While there are still areas with high demand for AI, overall growth in our major markets is slowing down,” Sweet stated.

Accenture’s Future Plans

In local currency, Accenture now forecasts FY26 revenue growth of only 2–5%, down from 7% the previous year. A 1–1.5% drag from its U.S. federal business, which has been impacted by disruptions under Elon Musk’s new Department of Government Efficiency (DOGE), which has restructured IT procurement, is not included in the projection.

Accenture stated that it will keep hiring and reskilling in priority areas in spite of the cuts and that staff growth in the US and Europe is still anticipated in FY26. Following the earnings release, investors’ reaction to the Nasdaq-listed company’s lowered growth estimate caused its shares to drop by roughly 2%.

Its layoffs reflect difficulties in the industry as a whole; India’s largest IT company, Tata Consultancy Services, has already let go of over 12,000 workers this year, citing a lack of skills and waning demand.