In response to macroeconomic concerns and uncertainty, Accenture announced on Thursday that it would reduce its annual revenue and profit projections and eliminate approximately 19,000 jobs.

According to Accenture, the company's decision to lay off employees was directly influenced by currency headwinds and wage inflation.

India is home to nearly 40% of the 7.38 lakh employees of the business. How the current round of layoffs will affect employment in India is still unclear.

It is estimated that 2.5% of our current global workforce will be affected by the people. In response to inquiries regarding the impact on India, an Accenture spokesperson stated, This should not be taken as a figure that applies to all geographies because it may differ by market and country due to our distinct footprint and growth.

Contrasted with a typical 13,000 worldwide net headcount expansion over the beyond 3/4, the organization revealed a headcount development of a pitiful 424 individuals this quarter.

In addition, the company stated that it anticipates slightly lower bookings in the March-May quarter in comparison to the record order bookings of the preceding quarter, indicating budget cuts from business. The company's forecast of third-quarter revenue was also lower than street estimates.

The earnings of Accenture serve as a foreshadowing of how the entire information technology industry, particularly Indian software service providers, will fare during the upcoming earnings season, which begins in the second week of April.

In local currency, the company now anticipates annual revenue growth of 8% to 10%, up from 8% to 11% previously.

Accenture started reducing costs by consolidating office space, transforming non-billable corporate functions, and streamlining operations in the second quarter.

The massive layoffs announced by major North American tech companies like Amazon, Microsoft, and Meta, among others, coincide with Accenture's decision to reduce headcount. In December, ET reported that IT hiring had slowed down amid concerns about the macroeconomic environment as a result of inflationary pressures.

Compounding wage inflation has presented us with challenging difficulties. Pricing has been doing that for us. However, we have also been doing that through digitization and cost reduction. KC McClure, Accenture's Chief Financial Officer, told analysts on the earnings call that "nearly half of the 19,000 people will depart by the end of fiscal year 2023." According to McClure, "these actions are expected to impact approximately 2.5% of our current workforce, or 19,000, of which more than half are non-billable corporate functions." In addition, we have identified an opportunity to pursue additional structural costs in order to establish the room's resilience and the P&L going forward."

The organization gauges $1.2 billion consumption for severance and $300 million expenses for combination of office space, with around $800 million of these expenses expected to be inc ..

Organization doesn't anticipate adding headcount during Q3 also yet communicated any desire for some interest increase during the final quarter (June-August) of the year.

For the period beginning in February, the consulting firm reported adjusted earnings per share of $2.69. In local currencies, revenue was $15.81 billion, up 9% from the same time last year.

The quarter saw a record number of new deal bookings totaling $22.1 billion. Consulting bookings totaled $10.7 billion, while managed services bookings totaled $11.4 billion. The administration added that it saw some tension on more modest arrangements, particularly in North America and in the counseling portion.