Mumbai, April 18: Accenture, an IT major, announced that it would be slashing 19,000 jobs across its global operations in March this year. This comes in as the company lowered its growth and profit projections in its earnings call amid recessionary fears and global headwinds. However, the layoffs will not take place all at once. The firm has said that they will let go of the employees at regular intervals over the next 18 months.

The tech layoffs that started last year continue to haunt techies as more and more companies are announcing layoffs. Citing overhiring, Accenture announcing layoffs comes on the backdrop of aggressive hiring in the past 2 years in anticipation of growing demand. Accenture is also delaying freshers' onboarding amid mass layoffs. The tech firm has implemented other measures in order to cut costs and survive in a tough economic environment. Accenture Layoffs: IT Firm To Cut 19,000 Jobs Over Next 18 Months, Say Reports.

By laying off 19,000 employees, Accenture will be saying goodbye to 2.5 percent of its global workforce. As for the company's Indian employees, it is not yet clear how the move will affect them. Layoffs at Ernst & Young: EY To Cut 3,000 Jobs or 5% of Its Workforce in US Due to ‘Overcapacity’, Says Report.

Accenture Layoffs: Top Five Points

  1. In March, Accenture announced it cut 19,000 jobs. It has been revealed that the layoffs will not happen all at once. Instead, employees will be let go over the next 18 months. The company said the layoffs were part of cost-cutting measures.

  2. Another reason behind layoffs cited by the company is overhiring. In the past two months, many companies have admitted to laying off people during the pandemic while some businesses have rebounded.

  3. 3. The company is also said to be delaying the onboarding of freshers. Recruitment incurs a certain cost the moment a new employee joins the organization. Accenture, therefore, is saving on recruitment costs and has delayed joining many freshers by up to a year.

  4. About 40 percent of Accenture's workforce is from India. As of now, there is no information as to what effect the layoffs will have on the Indian workforce working in the company. It is likely to be clarified in the coming days.

  5. Despite the company's announcement of layoffs, there are still hundreds of job openings at Accenture, according to the LinkedIn site. However, it is not clear whether the company is currently recruiting for these roles.

Indian IT companies, like TCS, Infosys, Wipro, Tech Mahindra, and others, have also been sharing similar management commentary over the past few quarters.

(The above story first appeared on LatestLY on Apr 18, 2023 08:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).