Accenture to lay off 5% global workforce; 10,000 in India at risk of losing jobs.

Tech giant Accenture is expected to lay off at least 5% of its global workforce due to the Covid-19 crisis, the firm told The Australian Financial Review (AFR).

According to the AFR report on Tuesday, in an internal global staff meeting CEO Julie Sweet said despite cutting subcontractors and halting fresh recruitment, the company still needed to reduce numbers as the pandemic had taken hold.

“In a normal year, we transition out about 5 per cent and we hire to replace them, because we are in a demand scenario,” Ms Sweet was quoted as saying in the meeting.

“Right now, we’re not in a demand scenario, so if we manage out the same percentage of people and don’t replace them, it allows us to continue to invest and preserve some people who have lower chargeability for when the market comes back,” she reportedly said at the meeting in mid-August.

India has the largest Accenture employee base of over two lakh employees and following the decision to fire 5% staff, at least 10,000 people stand the risk of losing their jobs.

As many as 25,000 people are likely to be fired across the world as the US-listed firm has a staff count of over five lakh.

CEO Sweet said “chargeability”, or the amount of working hours its staff could attribute to paying clients, had dropped below 90% for the first time in a decade, and performance metrics were being used to target staff to “transition out” of the company.

Source- Hindustan Times.

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