Overview
Accenture, one of the world’s largest consulting and outsourcing firms, has embarked on an aggressive restructuring program to align its workforce with the demands of the artificial‑intelligence (AI) era. In late September 2025, the company announced that employees who cannot be re‑skilled for AI‑driven roles will be “exited” from the company. The move forms part of a six‑month, US $865 million restructuring programme that is meant to free up funds for AI training and other investments. The policy has already resulted in thousands of layoffs and signals a broader shift within the consulting industry toward AI‑centric services.
Why the Restructuring?
- Demand for digital and AI services: Accenture’s clients increasingly request assistance with generative AI and automation projects. Reuters notes that the company beat fourth‑quarter revenue estimates but believes its long‑term growth depends on expanding digital and AI capabilities
- Sluggish demand for traditional consulting: The Irish Times reports that corporate demand for shorter consulting projects has been weak and that U.S. federal government spending cuts on consulting have slowed revenue growth.
- Internal efficiency: The restructuring will involve severance payouts and divestitures, with the savings reinvested in training and operational efficiency. Accenture expects charges of $865 million – $615 million recorded in the quarter ended August and another $250 million in the current quarter.
Layoffs and Exiting Workers
| Metric | Details | Sources |
|---|---|---|
| Employees laid off (past 3 months) | >11,000 employees globally. Accenture reduced its workforce from 791,000 to 779,000 employees between May and August 2025 and warned that lay‑offs would continue until the end of November 2025. | Times of India; Irish Times |
| Reason for layoffs | Workers who cannot be retrained in AI or digital skills are being “exited.” CEO Julie Sweet told analysts that the company is “exiting on a compressed timeline people where reskilling … is not a viable path for the skills we need”. | Times of India; Irish Times |
| Future layoffs | Restructuring will run until November 2025; additional employees may be asked to leave if they cannot be retrained. | Times of India; Irish Times |
| Financial impact | Severance and other costs totaled $615 million in the quarter ended August 2025; an additional $250 million is expected in the current quarter. | Reuters |
CEO’s Rationale
During an earnings call, CEO Julie Sweet explained that workers who cannot be reskilled are being exited because their skills are not aligned with the company’s future needs. She described this process as “rapid talent rotation,” emphasising that the company will simultaneously expand headcount in the next fiscal year. Sweet stressed that advanced AI is “becoming a part of everything we do,” adding that the company views AI as expansionary rather than deflationary.
Investment in AI Skills and Hiring
Despite the layoffs, Accenture is doubling down on AI and expects its overall workforce to grow again next year.
- Reskilling and AI specialists: The company has expanded its pool of AI and data specialists from 40,000 to 77,000 over two yearsirishtimes.com and trained more than 550,000 employees in generative AItimesofindia.indiatimes.com.
- Generative‑AI revenue: Generative‑AI projects accounted for $5.1 billion of Accenture’s new bookings in the past year, up from $3 billion the previous yearirishtimes.com.
- Future hiring: Sweet said headcount would grow next year and that Accenture is investing heavily in upskilling what she calls “reinventors”irishtimes.com. The LinkedIn news summary reported that Accenture plans to increase headcount overall despite the restructuringlinkedin.com.
- Training focus: Reuters quotes a CFRA analyst saying Accenture has a strong internal reskilling operationreuters.com. The restructuring aims to phase out roles with non‑viable skills and use savings from divestitures to fund trainingreuters.com.
Financial Performance and Outlook
Accenture’s shift toward AI is also reflected in its financial results:
- Revenue and income: The Irish Times reports that revenue for the fiscal year ending August 2025 grew 7 % to $69.7 billion, with net income of $7.83 billionirishtimes.com. The company posted $17.6 billion in fourth‑quarter revenuetimesofindia.indiatimes.comlinkedin.com, beating analysts’ estimatesreuters.com.
- Growth forecast: Accenture predicts revenue growth of 2 %–5 % in the new fiscal year, slightly below previous expectationsirishtimes.com. Government spending cuts in the United States, which account for about 8 % of Accenture’s revenue, are expected to slow growthirishtimes.com.
- Operating margins: Despite the restructuring, the company aims to expand operating profit margins by at least 10 basis points in the next fiscal yearirishtimes.com.
Industry Context and Worker Implications
Accenture’s actions mirror a broader trend in the technology and consulting sectors, where companies are trimming traditional roles while ramping up AI hiring. The Times of India notes that firms such as Meta and Microsoft have also been cutting roles not aligned with AI while expanding AI hiringtimesofindia.indiatimes.com. For white‑collar professionals, the message is clear: adapt to AI or risk obsolescencetimesofindia.indiatimes.com.
The restructuring also reflects geopolitical pressures. Reuters highlights that changes to the U.S. H‑1B visa program — including a potential one‑time fee — could raise labor costs, yet only 5 % of Accenture’s U.S. workforce is on such visasreuters.com. These policy changes, alongside reduced federal spending, have contributed to the conservative outlook for fiscal 2026irishtimes.com.
Key Takeaways
- AI skills are non‑negotiable. Accenture is replacing employees who cannot be reskilled in AI, emphasising that adaptability is essential for future employmenttimesofindia.indiatimes.com.
- Restructuring funds training. The $865 million programme uses severance and divestiture savings to finance upskilling and AI projectsreuters.com.
- Growth continues despite layoffs. Although over 11,000 positions were cut, Accenture plans to expand its workforce in 2026 and sees AI as an expansionary opportunitytimesofindia.indiatimes.comirishtimes.com.
- Industry signal. Accenture’s stance highlights how large consultancies are re‑orienting to AI. Those who fail to adapt may be left behind in an increasingly AI‑driven job market.
Conclusion
Accenture’s decision to “exit” staff who cannot be reskilled for AI marks a significant shift in how the firm manages talent. The restructuring is both a response to changing market demands and a proactive investment in future capabilities. While the policy has led to thousands of layoffs, it also underscores the company’s commitment to training and expanding its AI‑capable workforce. For employees and competitors alike, the message is unmistakable: in the age of generative AI, continuous learning and adaptability are paramount.
