Despite exits, Accenture says headcount will grow in FY26

Accenture has sought to clarify details of its restructuring after reports of large-scale job cuts. In a note to People Matters, the company pointed to its official fourth-quarter earnings release and call transcript, emphasising that while some employees will exit, overall headcount is expected to increase in fiscal 2026.

The consulting giant launched a six-month business optimisation programme worth around $865 million. According to its earnings documents, $615 million of charges were recorded in the fourth quarter of fiscal 2025, with a further $250 million expected in the first quarter of 2026. These costs reflect severance linked to workforce exits where reskilling is not possible and impairments tied to the divestiture of two acquisitions.

Accenture said the plan will deliver more than $1 billion in cost savings, which it intends to reinvest in talent and priority growth areas such as AI, cloud and data.

Julie Sweet, chair and chief executive, described the refreshed workforce approach as threefold: “investing in upskilling people, which is our primary focus; exiting people on a compressed timeline where reskilling is not a viable path for the skills we need; and identifying areas to drive even more operating efficiencies in our business, including through AI.”

Despite these exits, the company was explicit: “In FY26, we expect to increase our headcount overall across our three markets, including in the US and Europe, reflecting the demand we see in our business,” the release stated.

The company reported fourth-quarter revenues of $17.6 billion, up 7 per cent year on year, with new bookings of $21.3 billion, including $1.8 billion from generative AI work. For the full year, revenues climbed 7 per cent to $69.7 billion and adjusted earnings per share rose 8 per cent to $12.93.

Looking ahead, Accenture forecast revenue growth of 2 to 5 per cent in local currency for fiscal 2026, or 3 to 6 per cent excluding the 1 to 1.5 per cent drag from its US federal business. Adjusted EPS is expected to grow 5 to 8 per cent, while free cash flow is projected at up to $10.5 billion.

The clarification highlights the tightrope Accenture is walking: making targeted exits and writing down non-core assets, while still expanding its overall workforce and doubling down on high-growth technologies.