By Kavita Mistry 
Global IT and consulting giant Accenture has reduced its workforce by more than 11,000 employees in the past three months and signaled that further job cuts could follow if workers cannot be reskilled for the rapidly evolving artificial intelligence (AI) landscape. The announcement came as part of an $865 million restructuring plan aimed at aligning the company’s talent strategy with future demand.
Workforce Shrinks Amid AI Transition
Accenture’s headcount dropped from 791,000 to 779,000 between May and August 2025. Although the company did not disclose the exact number of layoffs directly tied to the restructuring, it incurred $615 million in severance and related costs last quarter and expects an additional $250 million in the current period.
“We are exiting on a compressed timeline people where reskilling… is not a viable path for the skills we need,” CEO Julie Sweet told analysts, indicating that employees unable to adapt to new technology requirements may face redundancy.
Consulting Demand Weakens, Profit Focus Remains
The company reported $69.7 billion in revenue for the year ending August — a 7% increase, with net income rising 6% to $7.83 billion. However, demand for short-term consulting projects has declined due to tighter corporate budgets and reduced U.S. federal spending, which historically contributes about 8% of Accenture’s revenue.
Accenture now expects 2–5% revenue growth in the new fiscal year but remains committed to expanding operating profit margins by at least 10 basis points annually.
AI Becomes the Core Growth Engine
Despite layoffs, Accenture is doubling down on its AI-first strategy. Generative AI projects accounted for $5.1 billion of new bookings in FY2025 — up from $3 billion a year earlier. The company has also significantly expanded its talent base, boasting 77,000 AI and data professionals, nearly doubling from 40,000 two years ago.
“We are investing in upskilling our reinventors, which is our primary strategy,” Sweet said, highlighting that reskilling and AI expertise are central to Accenture’s future.