Accenture to lay off thousands of employees in India

Accenture will lay off thousands of employees, as it is looking to cut at least 5% of its global workforce. The move by company comes amid increasing COVID-19 cases across the world. The company has about two lakh employees in India. The replacement of laid-off workers is unlikely this year due to the coronavirus pandemic.

Accenture chief executive Julie Sweet said that the company still needed to reduce numbers. Ms. Sweet said it was important that staff understood the “business context” of the employee “transitions” out of the firm.

“In a normal year, we transition out about 5 percent and we hire to replace them because we are in a demand scenario,” the Accenture CEO said. “Right now, we’re not in a demand scenario, so if we manage out the same percentage of people and don’t replace them, it allows us to continue to invest and preserve some people who have lower chargeability for when the market comes back.”

Accenture, like others in the IT industry, has seen revenues collapse following the Covid-19 pandemic. In the latest quarter, revenue grew a mere 1,3%.