Accenture, one of the world’s largest professional services firms, has announced the layoff of more than 11,000 employees in just three months, marking one of the most significant workforce reductions in its history. The move is part of a sweeping restructuring plan worth $865 million, driven by the growing influence of artificial intelligence (AI) across industries. While the company stresses that reskilling remains a top priority, its leadership has warned that more job cuts are on the horizon if employees cannot adapt quickly enough to the new AI-driven landscape.

Key Points

Over 11,000 jobs cut in three months

$865 million restructuring programme in place

Workforce down to 7,79,000 from 7,91,000

Layoffs to continue until November 2025

Severance costs reached $615 million last quarter

AI projects booked $5.1 billion in FY2024

77,000 AI and data professionals now on board

Why the Layoffs?

The layoffs are part of a major transformation plan designed to align Accenture’s workforce with the future of consulting in the AI era. CEO Julie Sweet explained that the company is operating on a “compressed timeline” to balance between reskilling and cost reduction. While the company would prefer to retrain employees, Sweet acknowledged that “where reskilling simply isn’t a viable path, we are making the difficult choice to exit people.”

The Numbers Behind the Cuts

Accenture’s global headcount fell to 7,79,000 employees by August 2025, compared to 7,91,000 three months earlier. The financial hit is also massive: severance and related costs stood at $615 million in the last quarter alone, with an additional $250 million expected in the current quarter. However, the company expects these painful moves to eventually save more than $1 billion annually once the restructuring is complete.

Layoffs to Continue Until 2025

Accenture has not disclosed the exact number of jobs that will be affected throughout the restructuring, but it has confirmed that reductions will continue until November 2025. This makes it one of the most prolonged layoff cycles in the firm’s history, and one that will impact offices worldwide.

Doubling Down on AI

While thousands of roles are being eliminated, Accenture is simultaneously increasing its investment in AI. The company reported that generative AI projects accounted for $5.1 billion in new bookings in the last financial year, up from $3 billion the year before. Accenture now employs 77,000 AI and data professionals, nearly double the number it had just two years ago. These experts, called “reinventors” internally, form the backbone of Accenture’s strategy to stay competitive in a rapidly changing market.

Impact on Clients and the Consulting Sector

For clients, Accenture is presenting itself as a partner ready to guide organisations through digital transformation. The firm is positioning its AI-first approach as the solution for companies grappling with tighter budgets, shrinking government contracts, and the need for efficiency. However, the strategy reflects a broader shift in the consulting and IT services sector, where the traditional model of deploying large teams of human consultants is under strain.

The Human Cost and Future Outlook

While Accenture’s shift towards AI promises efficiency and future readiness, it raises concerns about the fate of human expertise. Thousands of employees are being asked to “adapt or exit,” highlighting the risks of widespread automation. With industry leaders such as OpenAI’s Sam Altman predicting massive job losses due to AI, Accenture’s restructuring may be one of the first large-scale examples of this trend in the consulting world.

Conclusion

Accenture’s decision to lay off over 11,000 employees underscores the seismic changes reshaping the global consulting industry. By aggressively investing in AI while cutting traditional roles, the company is betting on a leaner, more digitally skilled workforce. While this strategy could help Accenture remain competitive, it also highlights the growing tension between human expertise and machine-driven efficiencies. For employees, the message is clear: reskill quickly or risk being left behind in the AI age.

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