Accenture, a global IT powerhouse, has laid off approximately 11,000 employees in the past three months as part of an ambitious artificial intelligence (AI)-focused restructuring program. CEO Julie Sweet emphasized that upskilling remains the company’s “number one strategy,” but acknowledged that the layoffs target employees whose roles cannot be realigned with the AI skills critical to Accenture’s future. The company, which saw its workforce shrink from 791,000 to 779,000 between May and August 2025, is simultaneously planning to hire new talent over the next year to bolster its AI capabilities, according to a Business Insider report.
The layoffs, costing an estimated $865 million in severance packages, reflect Accenture’s strategic pivot toward AI as a cornerstone of its operations. In the last six months alone, the company generated $2.6 billion in revenue from its AI consulting services, underscoring the technology’s growth potential. Sweet described AI as “expansionary” rather than “deflationary,” integrating it into every facet of Accenture’s offerings. However, for employees unable to transition to AI-driven roles, the company has opted for a “compressed timeline” exit strategy, prioritizing rapid talent rotation to align with its evolving business needs.
Beyond layoffs, Accenture’s restructuring includes divesting two acquisitions to streamline operations, as outlined by Chief Financial Officer Angie Park. These measures are expected to yield significant cost savings, which Park stated will be reinvested into workforce development and business growth. Accenture’s ability to retrain staff at scale is touted as a core competency, with plans to upskill existing employees on AI systems to meet the demands of emerging technologies. This dual approach of workforce reduction and reinvestment highlights the company’s commitment to maintaining a competitive edge in a rapidly transforming industry.
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Accenture’s moves mirror broader trends among tech giants navigating the AI revolution. Companies like Microsoft and Meta have similarly balanced layoffs with targeted AI hiring. Microsoft maintained its headcount by onboarding new talent, while Meta, after cutting 5 percent of its workforce earlier in 2025, filled many roles with AI-skilled professionals. Accenture’s strategy, however, stands out for its scale and speed, positioning the firm to capitalize on AI’s transformative potential while navigating the human cost of such a shift.
The restructuring underscores the challenges and opportunities AI presents for global corporations. As Accenture bets big on AI-driven growth, its leadership remains focused on balancing workforce transitions with long-term innovation. Stakeholders will closely watch how these changes impact the company’s performance and employee morale in an increasingly AI-dominated landscape.
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