Accenture Cuts 11,000 Jobs in Aggressive AI Reskilling Push

Accenture (ACN) is cutting approximately 11,000 jobs globally as part of a major restructuring plan designed to pivot the company toward an AI-first future. The consulting giant confirmed the layoffs are tied to an “AI reskilling” strategy that identifies and removes employees whose roles cannot be adapted to new automation technologies. The news was first reported by CX Today.

Key Facts

• Impact: ~11,000 employees cut globally.
• Reason: Restructuring workforce for AI; removing roles that cannot be “reskilled.”
• Cost: The restructuring program is expected to cost $865 million.
• Source: CX Today
• Additional Source: HR Grapevine

The “Reskill or Exit” Mandate

Accenture is moving fast to change its workforce. The company stated clearly that it is removing employees who do not fit into its new plans for artificial intelligence. CEO Julie Sweet told analysts that the firm is “exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need.”

This is not a standard cost-cutting move where random departments lose budget. Instead, it is a targeted effort to swap out old skills for new ones. The company is investing heavily in training its “reinventors,” but for those who cannot make the jump to AI-centric work, the company is ending their employment.

Headcount and Costs

Data shows the company’s global headcount has already dropped from 791,000 to 779,000 in just three months. This reduction is part of a broader $865 million restructuring program aimed at fixing efficiency and freeing up cash to invest in high-demand areas like Generative AI.

Reports indicate that severance costs have already reached $615 million for the recent quarter. While the company cuts traditional roles, it plans to hire more staff in specific data and AI sectors to meet client needs. This “churn”—firing one group while hiring another—is becoming a common pattern in the IT consulting sector this year.

Stock and Market Reaction

Investors reacted poorly to the immediate costs of the plan. Accenture shares dropped 2.7 percent following the news, hitting their lowest point since late 2020. Market analysts are watching to see if this aggressive pivot to AI will pay off in the long run or if the heavy upfront costs of severance and restructuring will drag down profits for the rest of the fiscal year.