Accenture lays off 11,419 in three months, spends $615m on severance: Reports

Accenture has spent more than $2 billion on severance in the past three years as part of a restructuring drive, but the consulting firm has said its overall headcount will grow in fiscal 2026.

According to the company’s filings, global headcount stood at 7,79,000 at the end of August 2025, down from 7,91,000 three months earlier. Accenture confirmed it cut 11,419 jobs in the latest quarter as part of its business optimisation plan.

Severance costs and programme details

In its fourth-quarter earnings release, Accenture reported charges of $615 million in the quarter linked to severance and related costs, with a further $250 million expected in the first quarter of fiscal 2026. The restructuring programme began in the final quarter of fiscal 2025 and is valued at about $865 million.

The Wall Street Journal reported that the programme combines severance with write-downs tied to the sale of two acquisitions. Reuters noted that Accenture expects the plan to deliver more than $1 billion in annual savings once fully implemented.

Julie Sweet, Accenture’s chair and chief executive, told investors the company is acting “on a compressed timeline.” She said: “We are investing in upskilling people, which is our primary focus; exiting people where reskilling is not a viable path; and identifying areas to drive even more operating efficiencies in our business, including through AI.”

AI investment and new bookings

Accenture has significantly expanded its investment in artificial intelligence. In fiscal 2025, the company reported $5.1 billion in new bookings from generative AI projects, up from $3 billion the year before. In the fourth quarter alone, new bookings included $1.8 billion from AI work.

The company now employs 77,000 AI and data professionals, compared with 40,000 two years ago. These employees are described internally as “reinventors” and positioned at the centre of its growth strategy.

For the fourth quarter, Accenture reported revenues of $17.6 billion, up 7 per cent year on year, and new bookings of $21.3 billion. For the full fiscal year, revenues rose 7 per cent to $69.7 billion. Adjusted earnings per share climbed 8 per cent to $12.93.

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

After reports of large-scale job cuts, Accenture said in a note to People Matters that while some employees will exit, “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.”