Last Updated: March 24, 2023, 09:00 IST
The firm is altering its forecasts amid IT slowdown
Accenture Plc lowered its annual income and revenue forecasts and determined to chop about 2.5% of its workforce, or 19,000 jobs, the newest signal that the worsening international financial outlook was sapping company spending on IT companies.
(Reuters) -Accenture Plc lowered its annual income and revenue forecasts and determined to chop about 2.5% of its workforce, or 19,000 jobs, the newest signal that the worsening international financial outlook was sapping company spending on IT companies.
More than half of the roles to be minimize can be in its non-billable company features, Accenture mentioned on Thursday, sending its shares up 6.4%.
Since late final 12 months, the tech sector has laid off lots of of 1000’s staff as a result of a requirement downturn attributable to excessive inflation and rising rates of interest.
Rival Cognizant Technology Solutions final month pointed to “muted” progress in bookings, or the offers IT companies corporations have within the pipeline, in 2022 and forecast quarterly income under expectations.
IBM Corp and India’s high IT companies agency Tata Consultancy Services have additionally flagged weak spot in Europe, the place the Ukraine struggle has affected consumer spending.
Accenture now expects annual income progress to be between 8% and 10%, in contrast with its earlier projection of a 8% to 11% enhance.
Earnings per share is predicted within the vary of $10.84 to $11.06 in contrast with $11.20 to $11.52 beforehand. The firm expects to incur $1.2 billion in severance prices by fiscal 2023 and 2024.
“Companies remain focused on executing compressed transformations,” Chief Executive Julie Sweet mentioned in a post-earnings name referring to how companies have been making an attempt to change into leaner within the turbulent economic system.
A survey of greater than 1,000 IT choice makers by U.S.-based Enterprise Technology Research mentioned they plan to cut back their 2023 price range progress. The progress expectations at the moment are 3.4%, down from 5.6% enhance captured in October 2022.
“In short, the data indicates a very difficult environment ahead for consulting firms,” mentioned Erik Bradley, chief engagement strategist on the expertise market analysis agency.
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(This story has not been edited by News18 workers and is revealed from a syndicated information company feed)
