Sunday, 23 August 2009

Accenture cuts senior jobs

(By Richard Holway 6.00pm Sunday 23rd Aug 09) Accenture is to cut its senior executive staff by about 7% or 336 jobs, as part of its cost-cutting program. It will take $247m in pre-tax restructuring charges in Q4. Accenture globally has about 177,000 employees, of which 4,800 are senior executive employees, so in its totality it is small beer.

Accenture expects a third consecutive quarter of reducing sales and revenues. Revenue for the current quarter will be in the range $5- $5.2 billion – as per the June forecast. That’s a c25% reduction on the $6.6b achieved in the quarter a year back.

For our views on the latest results, see our 29th June post – Accenture – Eight years on.
Basically Accenture demonstrates that most things related to consulting and project work is still in the doldrums. “We see no green shoots”. Conversely outsourcing – particularly where related to ‘cost-saving’ measures – is still the place to be. Accenture ‘plays’ in both camps but has more emphasis in the former than many of its larger competitors. This is demonstrated by Accenture’s share price performance. On Friday Accenture was down 2.4% making a 8% gain YTD. This contrasts with a 43% YTD gain for CSC and 38% gain at HP (EDS).

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