UK jobs at risk as consultancy giant Accenture axes 19,000 staff amid fears for the global economy
Accenture is axing 19,000 of its worldwide workforce in a cull that puts hundreds of jobs in the UK at risk.
The consultancy giant, once part of accountancy business Arthur Andersen, said it will cut 2.5 per cent of its 738,000 staff over the next 18 months.
It is the latest sign that concerns about the global economic outlook are sapping corporate spending on IT services and consulting. Around 300 of Accenture’s 11,000 UK staff could lose their jobs.
Jobs cull: Accenture, once part of accountancy business Arthur Andersen, said it will cut 2.5% of its 738,000 staff over the next 18 months
The Dublin-based group, which is listed in New York, said it expects to incur staff severance costs of close to £1billion and a further £250million of expenses from consolidating its office space.
The job cuts follow a period of rapid growth in recent years as major corporations sought advice on tech projects.
A hiring binge followed, with Accenture taking on more than 230,000 staff over the past three years.
Other consulting groups have also announced plans to axe jobs with McKinsey laying off up to 2,000 of its 45,000 staff.
The retrenchment comes as tech companies lay off hundreds of thousands of employees.
The job cuts have been caused by high inflation and rising interest rates taking their toll on the sector.
Accenture also reported a 5 per cent rise in revenues to £12.8billion for the three months to February, but profit fell 5.8 per cent to £1.5billion.
The company’s shares surged more than 5 per cent yesterday.