Global IT giant Accenture has laid off 11,000 employees over the past three months as part of a sweeping restructuring programme centred on artificial intelligence (AI).
The company said it is letting go of workers who cannot be retrained with AI-related skills, while simultaneously planning to expand its workforce in other areas over the coming year, according to a report by Business Insider.
Accenture CEO Julie Sweet described “upskilling” as the company’s top priority.
“Every new wave of technology requires retraining and retooling. Accenture’s core competency is doing that at scale,” she said. “But we are exiting on a compressed timeline in areas where reskilling is not viable for the skills we need.”
The company has already generated $2.6 billion in AI consulting revenue over the past six months, highlighting the growth potential driving its restructuring. However, the layoffs will cost Accenture an estimated $865 million in severance packages, according to Tech.co. Its global headcount has dropped from 791,000 to 779,000 between May and August this year.
Chief Financial Officer Angie Park said the plan involves more than job cuts, noting that Accenture will also divest two acquisitions as part of “rapid talent rotation.”
“These actions will result in cost savings which will be reinvested in our people and our business,” Park explained.
Sweet emphasized that Accenture views AI as “expansionary” rather than “deflationary,” making it central to the company’s future strategy.
Accenture is not alone in this approach. Microsoft has also restructured its workforce, laying off employees while hiring AI talent to keep overall headcount stable. Similarly, Meta cut about 5% of its workforce earlier this year, but quickly rehired in AI-related roles after upskilling.
The message across the tech industry is clear: AI is reshaping workforces, and companies are betting heavily on retraining as the key to survival.
