Accenture, the multinational professional services company is reducing its workforce in the UK by about eight per cent. That means, about 700 to 900 of its employees will be rendered jobless. Accenture is among the largest employers in the Indian IT space, and the Company has already put a stop to any new hiring in India.
The employees in UK have been informed of the decision to downsize and a redundancy programme will be chalked out in consultation with the staff. The layoffs will be carried out in the July to September period, affecting staff across all levels and departments.
Apparently, the information technology organisation has been burdened with overcapacity in relation to demand. This has put a lot of financial pressure on the firm, even while it has been struggling to address excessive structural costs and low demand.
Interestingly, in March, the Company had revealed its budget for mergers and acquisitions to be $1.6 billion. Accenture acquired about 18 companies this year, including Symantec’s MSSP business, encompassing cyber security services and six security operations centres. Accenture has also relocated employees in its strategy and consulting divisions to help public-sector clients improve their operations.
With furlough schemes set to conclude in August, companies across the UK will be facing an employment crisis very soon. The UK economy has also taken a beating with many companies facing a slump in business and resorting to layoffs to stay afloat.