Global consultancy firm Accenture plans to slash 19,000 jobs worldwide.
The plan was well received by investors, with Accenture stock jumping 8.4% after the decision was reported in a regulatory filing on Thursday.
- Accenture's plan will see the company lay off about 2.5% of its workforce over the next 18 months.
- The decision came after the consultancy added 39,000 workers over the last year, according to a filing cited by Bloomberg.
- Accenture expects employee severance and other expenses related to its decision to incur $1.2B in costs.
- The company expects to spend an additional $300M consolidating office space after the terminations.
Zoom Out:
- Accenture's round of job cuts is larger than the planned layoffs announced by other consultancies in recent months.
- McKinsey & Co. plans to cut 2,000 jobs and KPMG said it would lay off 700 staff in its U.S. advisory business.
- The larger scale of Accenture's job cuts may be related to its closer ties to the tech industry, which has faced mass layoffs this year.
