Accenture Plc on Thursday said it would cut about 19,000 jobs, and revised downwards its annual revenue and profit projections. It is the latest sign that the worsening global economic outlook was sapping corporate spending on IT services.
Accenture on Thursday also cut its annual revenue growth and profit forecasts, amid worries that recession-wary enterprises will cut technology budgets. The company now expects annual revenue growth to be in the range of 8-10 per cent in local currency, compared to 8 per cent to 11 per cent expected previously.
Accenture recently acquired Bengaluru-based industrial artificial intelligence company Flutura. The deal size was not disclosed.
“Flutura will strengthen Accenture’s industrial AI services to increase the performance of plants, refineries, and supply chains while also enabling clients to accomplish their net-zero goals faster,” Accenture said in a statement.
Senthil Ramani, senior managing director and Accenture Applied Intelligence lead for growth markets, said, “Flutura democratizes AI for engineers. This acquisition will power industrial AI-led transformation for our clients globally and particularly in Australia, South-East Asia, Japan, Africa, India, Latin America and the Middle East.”
Accenture in a statement said it expects revenues for the third quarter of fiscal 2023 to be in the range of $16.1 billion to $16.7 billion, an increase of 3 per cent to 7 per cent in local currency, reflecting the company’s assumption of an approximately negative 3.5 per cent foreign-exchange impact compared with the third quarter of fiscal 2022.
The company on Thursday, March 23, reported financial results for the second quarter of fiscal ended February 28, 2023, with revenues of $15.8 billion, an increase of 5 per cent in US dollars and 9 per cent in local currency over the same period last year.
New bookings for the quarter were a record $22.1 billion, with consulting bookings of $10.7 billion and managed services bookings of $11.4 billion.
(With Inputs From Agencies)
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