Accenture, a global consulting firm, plans to lay off employees who cannot be reskilled on artificial intelligence as part of a broader restructuring strategy that prioritizes AI capabilities. The company’s CEO Julie Sweet announced the “compression timeline” approach during a Thursday earnings call, emphasizing that advanced AI is becoming “a part of everything we do” and requiring workers to “retrain and retool” at scale.
What you should know: Accenture has already reskilled 550,000 workers on generative AI fundamentals while simultaneously cutting staff who cannot adapt to AI-focused roles.
- The company outlined an $865 million business optimization program covering severance costs and headcount reductions over six months.
- Despite layoffs, Accenture continues hiring AI talent, growing from 40,000 AI and data professionals in 2023 to 77,000 in 2025.
- The firm expects to increase overall headcount in the next financial year across the U.S. and Europe markets.
The big picture: Accenture’s aggressive AI transformation reflects broader industry pressure as companies race to deploy artificial intelligence across their operations.
- The company reported $69.7 billion in revenues this year, representing 7% growth driven by massive client demand for AI deployment.
- Sweet attributed this growth to Accenture’s early AI investments, positioning the firm as a key partner for enterprises adopting advanced AI technologies.
What they’re saying: Leadership emphasized the strategic imperative behind the restructuring decisions.
- “We are investing in upskilling our reinventors, which is our primary strategy,” Sweet explained, adding that the company is “exiting on a compression timeline” people for whom reskilling isn’t a “viable path.”
- “We expect savings of over $1 billion from our business optimization program, which we expect that we will reinvest in our business and in our people because it’s so important for our future growth,” said CFO Angie Park.
Why this matters: The move signals how rapidly AI adoption is reshaping professional services, forcing even major consulting firms to make difficult workforce decisions to remain competitive.
- “Every CEO, board and the C-suite recognize that advanced AI is critical to the future,” Sweet noted, highlighting the urgency driving corporate AI transformations.
- “The challenge right now they’re facing is that they’re really excited about the technology and they’re not yet AI ready for most companies,” she added, explaining the market opportunity Accenture is positioning to capture.
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