Accenture to Cut 25,000, or 5%, of Jobs

Accenture is reportedly cutting about 5% of its 500,000-strong workforce to reduce costs.
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Accenture  (ACN) - Get Report is reportedly cutting as many as 25,000 jobs from the consulting, technology and outsourcing service provider's 500,000-strong global staff as growth slows amid the coronavirus pandemic. 

The Dublin company is targeting workers in the bottom 5% based on their performance, achievements and skills, the Daily Mail reported Tuesday. 

"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," Chief Executive Julie Sweet said, according to the Daily Mail. 

Sweet also said that the company's growth fell to 1.3% following the pandemic from 8% in February. 

"This year, in addition to the normal 5%, we've identified more people who need improvement. ... So we're making sure ... if we have to make other actions, we know where our performance is," Sweet said.

In July, the company had said it was cutting 900 U.K.-based jobs

Accenture's lack of growth has not stopped the company from acquiring as many as 20 different companies in 2020, including cybersecurity and data analytics companies. 

In March, Sweet had said the company was in a "position of strength" to get through the pandemic. 

In June, Accenture topped analysts' third-quarter expectations, reporting net income of $1.25 billion, or $1.90 a share. That was down from the $1.27 billion, or $1.93, it reported a year earlier, but exceeded analyst estimates of $1.85 a share. 

Accenture shares at last check edged up 0.3% to $238.48.