The exits come even as the firm continues to invest heavily in generative AI and cloud services, which have been driving demand. “While we continue to see pockets of strong AI-driven demand, overall growth in our key markets is moderating,” CEO Julie Sweet said on September 25.
No specifics on headcount reductions were disclosed.
CFO Angie Park cautioned that FY26 revenue growth will fall short of prior guidance, noting the company is sharpening its focus on efficiency and prioritising investments that deliver higher returns.
The restructuring reflects a broader trend across India’s IT sector. Tata Consultancy Services (TCS), the country’s largest IT services provider, recently announced over 12,000 layoffs citing skills mismatches, underscoring the pressures facing the industry despite interest in AI and cloud projects.
Accenture’s workforce fell by about 7,000 in Q4 FY25, bringing its total headcount to roughly 770,000. Management assured analysts that reskilling programmes and hiring in priority areas would continue to safeguard client delivery. Nevertheless, the company expects headcount to grow across the US and Europe in FY26.
Also Read: Accenture sees FY26 revenue growth at 2–5%, EPS to rise 9–12%
Shares of Accenture dipped around 2% after the earnings release.
Subdued demand
Accenture now expects full-year FY26 revenue growth of just 2–5% in local currency, well below the 7% recorded in the previous fiscal. The figure excludes a 1–1.5% drag from its US federal business.
After Donald Trump assumed the US presidency, he appointed entrepreneur Elon Musk to head the Department of Government Efficiency (DOGE), tasked with “modernising federal technology and software to maximise governmental efficiency and productivity”. Procurement delays under this restructuring have weighed on Accenture’s federal business.
“The new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue,” Sweet said earlier in March this year.
Acquisition pullbacks
As part of its ongoing portfolio optimisation, Accenture also announced plans to exit certain non-core businesses and divest assets worth $865 million.
Also Read: Exclusive: Accenture proposes new campus in Andhra Pradesh, eyes adding 12,000 jobs
The strategy is aimed at reallocating resources to higher-growth areas, particularly AI, digital services, and cloud-driven initiatives, while streamlining operations and strengthening its focus on emerging technologies.
