On Thursday, Accenture Plc made a few changes to their financial projections for the year and announced that they would be reducing their workforce by 2.5%, amounting to 19,000 job cuts. This is indicative of the global economic situation deteriorating and leading to decreased corporate investments in IT services. Accenture also revealed that it would be trimming its Indian workforce of 350,000 by at least 7,000 workers and would cut 19,000 employees or 2.5% of the global workforce in the next 18 months. The company announced that more than half of its impending layoffs will impact non-billable corporate functions, which sent its stocks soaring by 4% before the trading session began. Accenture has modified its outlook for the upcoming year, with a revenue growth prediction of 8-10%, which is slightly lower than its earlier 8-11% evaluation.
Accenture recently revised its EPS figures and now anticipates it to range between $10.84- $11.06 as opposed to the initial expectation of $11.20- $11.52. According to Julie Sweet, the CEO of the organization, companies are prioritizing putting a focus on making their organisations more proficient during this unsteady economic condition. She highlighted this in her post-earnings call wherein she spoke of how businesses have been attempting to become leaner. A survey of more than 1,000 IT decision-makers by U.S.-based Enterprise Technology Research said they plan to reduce their 2023 budget growth. The growth expectations are now 3.4%, down from the 5.6% increase captured in October 2022. Erik Bradley, the Chief Engagement Strategist from a technology market research firm reported that IT Consulting and Outsourced IT sectors' forward-looking technology spending has almost reached zero.
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