IT layoffs: How much did Accenture spend to reduce its workforce?

IT layoffs: IT consulting firm Accenture has cut 11,000 jobs across its global workforce and expects more layoffs in the coming months, the tech giant announced on Thursday as it announced its quarterly results. The job losses come at a time when the company’s artificial intelligence push is accelerating.

The IT major announced an $865 million restructuring plan due to slower growth expected this year, attributed to reduced corporate demand caused by federal spending curbs.

How much did Accenture spend on layoffs?

According to Accenture’s 4FY25 earnings, the IT giant’s employee work optimization costs, including employee severance costs, reached $615 million in the last quarter, with an additional $250 million expected this quarter. Specifically, severance costs include financial payments or benefits a company provides to an employee due to layoffs.

In FY25, severance pay costs reached $344 million. The company expects to save over $1 billion from the restructuring.

According to Accenture’s annual report, in fiscal 2024 and 2023, the company recorded business optimization costs of $438 million and $1,063 million, respectively, primarily for employee severance pay.

Accenture restructuring

The IT giant’s $865 million restructuring program primarily includes layoff costs associated with this talent strategy.

“On a very tight timeline where we don’t have a viable way to acquire skills, we’re trying to kind of get people excited so we can get more of the skills we need,” CEO Julie Sweet told analysts during a phone call.

Accenture had 7,79,000 employees as of the end of August; this was around 11,000 fewer than the 7,91,000 employees three months ago.

Accenture Q4 results

Accenture reported that its revenue increased 7 percent year-on-year to $17.60 billion in the June-August 2025 quarter. The company’s fiscal year is from September to August. Accenture also noted that approximately 2.5 percent of the revenue change was due to currency effects.