The company has about 2 lakh employees in India. I have been working in accenture from last three years. UpperEdge helps companies develop and execute fact-based sourcing, negotiation, and project execution strategies to maximize their key IT supplier value. There is no transparency in judging the performance. Accenture layoffs: In a setback to thousands of Indian employees, Accenture, the global professional services company is set to lay off 5 percent of its workforce. How 25,000 Accenture Layoffs Will Impact Customers. In an effort to cut their own costs amid decreasing demand, consulting companies like Accenture are turning to layoffs. Professional services firm Accenture is cutting up to 25,000 jobs from its workforce, including layoffs in the US and more planned cuts in the UK and India… Here are some of the major changes they made in 2020: May – Accenture paid out bonuses and gave promotions to more than half of its employees in India, doubling down on their top talent. Still, diverse IT consulting revenue stream may help to stem further cuts. Accenture CEO, Julie Sweet, insists that identifying around 5% of its staff as the lowest-performing and letting them go is standard procedure each year. Updated: August 26, 2020 3:58 pm IST. Amid the coronavirus pandemic and associated economic fallout, businesses such as Cognizant, Deloitte, KPMG and PwC have confirmed layoffs. 6 Accenture acquired at least 18 companies from January through June 2020, according to ChannelE2E reporting. This caused a sudden drop in demand for system integrator (SI) services. I joined accenture in June 2019 through MBA college placements as a business analyst and … Accenture is offering a seven-month severance payout to employees impacted by its latest layoffs. Login | Sign Up . 30 At first, I blamed the CEO. Hey Tim: Julie Sweet has been CEO for exactly one year. Still, I certainly understand what it’s like to be a rank-and-file employee who gets cut during a challenging economy. The move will be affecting thousands of Indians employed by the company, in the wake of sluggish business due to Covid-19 pandemic, a report in Australian Financial Review has stated. Moneycontrol News August 26, 2020 / 09:40 PM IST August 28, 2020 Greg Hall No Comments Share. Ideally, you set clear and strong expectations for your named resources from the start and can continue (or begin) to hold them accountable in your SI quality reviews. AT&T is engaged in sweeping layoffs, according to a new report from Axios, which also suggested that the telecom giant is engaged in significant outsourcing. All Benefits Culture Diversity Interview Layoffs Promotion PTO Salary Work From Home . Related: Technology Industry Layoffs – Complete Job Cut List. June — Accenture announced a hiring freeze. For 20 years, Accenture has taken a systematic look across the enterprise landscape to identify emerging technology trends that hold the greatest potential to disrupt businesses and industries. Login | Sign Up . Resouces who had excellent feedbacks-were later modified inorder to push them for layoff. The pandemic has prompted businesses to hit the brakes on their large transformation projects, seek ways to reduce project costs, or even in some cases, cancel projects indefinitely. Despite the current economic challenges, Accenture remains one of the world’s strongest IT consulting firms — thanks to organic R&D (research and development) coupled with tuck-in acquisitions to address cloud, SaaS, big data, analytics, artificial intelligence and cybersecurity opportunities. There’s lot of fat at the top in Accenture. Follow . }. Save my name, email, and website in this browser for the next time I comment. In addition, we have identified structural costs that we need to address.”. Accenture's lack of growth has not stopped the company from acquiring as many as 20 different companies in 2020, including cybersecurity and data analytics companies. 10,001+ Employees . It also suggests Accenture is preparing for even further staffing reductions. Learn more about our IT Services Sourcing and Negotiation Support. FOLLOW US. Share. The pandemic has prompted businesses to hit the brakes on their large transformation projects, seek ways to reduce project costs, or even in some cases, cancel projects indefinitely. Required fields are marked *. Accenture layoffs will impact roughly 25,000 employees or at least 5 percent of the IT consulting giant’s workforce, according to The Australian Financial Review. New Posts Accenture. The global Accenture job cut report surfaces roughly a month after regional layoff reports surfaced. In particular, high-performing senior resources are at risk of being transitioned out of projects as Accenture looks to put their stars in front of new prospects to win new business. Get The App . Topics . IT consulting firm Accenture will lay off thousands of employees, as … Accenture layoffs to affect Indian employees The consulting giant has a staff strength of 200,000 in India and nearly 10,000 could be impacted by KS Kumar August 26, 2020 August 27, 2020 Guiding VARs, MSPs, CSPs, Total Service Providers (TSPs) s & Strategic IT Service Providers: From Entrepreneur to Exit. All contents © 2021 ChannelE2E and After Nines Inc. In the latest quarter, revenue grew a mere 1.3%. according to a July 2020 report from The Guardian, job cut trend across the IT consulting and IT services sector, coronavirus pandemic and associated economic fallout. Notify me of followup comments via e-mail. What should concern companies most is not the layoffs of the bottom 5% of performers but the decision to halt standard hiring practices. Accenture to fire 5 pc of its workforce; 10,000 employees in India to face termination The Australian Financial Review (AFR) reports that Accenture CEO … All Benefits Culture Diversity Interview Layoffs Promotion PTO Salary Work From Home . The closer you get to renewal, the less leverage you’ll have as those high performers will no doubt be committed early to new business or key client engagements. The package is high considering most companies offer a two-three months’ payout, or one month of salary for every year of service put in. I don’t think showing the CEO the door is the answer to a larger set of challenges. At a minimum, expect Accenture to dig in on rates and even propose increases. If the co. is not meeting its targets, Julie Sweet should be the first one to go, followed by high package leadership. Sweet informed the company in a global staff meeting that it would not hire to replace the 5% as they would in a normal year because they are “not in a demand scenario”. Discussions Overview . There are grave mal-practices internally. 13 Comments on this Story. display: none !important; Lastly, the pandemic is a unique situation that put pressure on everyone to cut and optimize costs. .hide-if-no-js { Discussions Overview . Post a comment below, find my other UpperEdge blogs and follow UpperEdge on Twitter and LinkedIn. Ey layoffs 2020. Currently, IT industry is laying off … For instance, 700 to 900 employees in the United Kingdom are being cut, according to a July 2020 report from The Guardian. August – Accenture announced layoffs of 5% of their staff which equates to roughly 25,000 employees. Roughly 6 percent to 8 percent of Accenture’s UK staff — across all levels and all parts of the business — will be impacted, that report said. A little more than a month later, it has come out that Accenture will be cutting as many as 25,000 jobs worldwide, targeting the bottom 5% of performers. Unknown 62 days ago. In addition, we have identified structural costs that we need to address.”. Deloitte, KPMG and PwC have confirmed layoffs.  =  This statement, combined with Accenture’s decision to halt standard hiring practices, does seem to indicate Accenture’s bear market view for its services in the near term. First, dust off those key personnel clauses. Updated: 27 Aug 2020, 07:03 AM IST Ayushman Baruah. Though this comes with its own challenges, there are still ways to maximize the value you receive from your System Integrator while maintaining relationships. Accenture India staff to face brunt of layoffs 2 min read. The larger concern for companies is that Accenture is not back-filling for these positions. Posting as : works at Accenture Consulting Jun 11, 2020. FOLLOW US. This caused a sudden drop in demand for system integrator (SI) services. Accenture layoffs could impact 25,000 employees or 5 percent of staff at global IT consulting firm, report says. New Posts Accenture. Accenture Plc, one of the world’s largest consulting firms, will curb hiring and halt some promotions in the midst of the coronavirus pandemic. In the near term, I suspect companies will see an increase in turnover of their current Accenture resources as they look to rebalance their talent across accounts. You’ll want to ensure that you protect those resources who are critical to your programs and support. Accenture layoffs: India, which is the IT company's largest base, accounts for nearly 2 lakh of its 5 lakh-strong workforce. -jp, Your email address will not be published. Accenture layoffs could impact 25,000 employees or 5 percent of staff at global IT consulting firm, report says. IBM, Cognizant, Accenture Starts Firing Employees Due To Coronavirus. Accenture is to cut up to 900 jobs in the UK as the consultancy firm reduces costs in the face of lower demand for its services. Your email address will not be published. You may also want to consider accelerating discussions on early renewals to maximize your leverage in preserving existing favorable terms, rates, and existing star performers. If Accenture is unable to draw down on these resources from existing accounts, don’t be surprised if they underwhelm you when presenting their team and capabilities. I think it’s important for companies to not be immediately alarmed by Accenture’s most recent workforce reductions as this is a common ongoing practice to weed out the non-performers and reward the high performers. 10,001+ Employees . In an effort to cut their own costs … What is even more concerning is Sweet’s statement, “This year, in addition to the normal 5%, we’ve identified more people who need improvement … So, we’re making sure … if we have to make other actions, we know where our performance is.”. The layoffs reinforce a recent job cut trend across the IT consulting and IT services sector. Save my name, email, and website in this browser for the next time I comment. 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