Accenture Cut Jobs Indians

Accenture to cut 25,000 jobs, thousands of Indians may lose jobs

Australian Financial Review (AFR) reported that Accenture, which has over 5 lakh employees worldwide is to cut at least 5% of its low-performing workforce and thousands of Indians are set to lose jobs owing to the sluggish business the company is witnessing during the COVID-19 pandemic.

Accenture told IANS that at this time, the company is not planning extraordinary global workforce actions. A report in the Australian Financial Review (AFR) first reported this, citing an internal staff meeting by Accenture CEO Julie Sweet in mid-August.

“Every year, as part of our performance process, we have conversations with our people about how they are performing, areas for improvement, their potential to progress, and whether they are a long term fit for Accenture,” it said.

“This year, across all parts of our business and all career levels, we will identify approximately 5 per cent of our people as our lowest performers, and these individuals will transition out of Accenture. This is consistent with our actions each year,” the company informed.

Also Read: Huawei to cut more than 50% of its workforce in India

According to the AFR report, Sweet said in the global staff meeting: “In a normal year, we transition out about 5 per cent and we hire to replace them, because we are in a demand scenario”.

“Right now, we’re not in a demand scenario, so if we manage out the same percentage of people and don’t replace them, it allows us to continue to invest and preserve some people who have lower chargeability for when the market comes back.”

According to the report, Sweet had said “chargeability”, or the number of working hours its staff could attribute to paying clients, had dropped below 90% for the first time in a decade, and performance metrics were being used to target staff to “transition out” of the company.

“This year, in addition to the normal 5%, we’ve identified more people who need improvement. So we’re making sure..if we have to take other actions, we know where our performance is,” she was quoted as saying In an internal global staff meeting streamed online.

Accenture said that In India, “we continue to hire, and as part of our ongoing compensation programs, we also recently recognized a number of our people with bonuses and promotions”.

“She said that despite cutting subcontractors and halting fresh recruitment, the company still needed to reduce numbers,” the report said.

“We finished our second quarter at the end of February and we were growing 8 per cent. We were having an incredible year”.

The growth had collapsed to 1.3% owing to the pandemic. Accenture currently has 509,000 people serving clients in more than 120 countries.

To be sure, Accenture is not the only IT company to have laid-off employees. Recently, Nasdaq-listed IT services firm Cognizant Technology Solutions Corp. which has more than 2 lakh employees in India, reportedly laid off thousands on the bench who were not actively involved in any project. IBM too has reportedly laid off about 2,000 employees globally.

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