WHAT IS THE REAL DEAL?
Accenture, A global professional services company is laying off thousands of employees around the globe, as the firm looks forward to improving its efficiency across the world. As reported by Australian Financial Review (AFR), CEO of Accenture Julie Sweet had an online internal staff meeting earlier this month, in which she elucidated that, the company discerned some “real areas of competence” which will be implicated on the basis of headcount without any doubt. Across the globe 25000 people are accounted for the bottom 5% of underperformers and the Accenture Company will be soon looking for new employees to replace them in order to increase the demand and efficiency to retain the company.
The company had gone into the crisis of overcapacity of people relative to demand, says the reports obtained by The Guardian. This crisis had caused additional strain on the business due to the bottommost demand in decade and also the national attrition was reduced. This has lead Accenture to lay off 25000 employees putting an end to their Accenture careers and Accenture jobs. It is quite a sad news which keeps accumulating for global workers in this pandemic- infatuated year as the plans of reduction of employees is designed to mitigate the risks of decelerating economy.
The global staff of Accenture Company consists of 5 lakh employees in which it employs 2 Lakh, Indian employees, making it the major hub of technology for the employees present in India. According to reports stated by Sweet, the amount of working hours the staff could assign to the clients or the chargeability had collapsed below 90 percent for the first time in a decennium, also the performance of the employee is being used as the main target, to the “layoffs” by the company.
Accenture layoffs came into the limelight when the US media published the report about the hundreds of jobs cuts were registered in UK. 900 or 8% jobs were slashed in UK to lower the cost on considering the reduced demand for the Accenture services, stated the report by The Guardian. The Accenture CEO has stated addressing Analysts that, the company is focusing on the cost structure and also on managing the supply and demand of and for the company, which may result in 5% layoffs per year in Q3 (March–May) earning calls. Sweet also stated that the company is not in a demand scenario so the replacing process will be on halt till the situation improves in the economic market. Also the company can preserve people with lower chargeability till the market comes to the normal position. In a normal year the Accenture jobs were hired to replace as they were in a demand scenario.
WHAT IS ACCENTURE CLAIMING?
According to the statement of Accenture, every year company has conversation with the employees as a part of their performance process. In this process the company converse with people they work with for the scope of improving the stakes of company. However this also helps the company to analyze about how employees are performing, areas of improvement and their potential to progress and whether they are fit for long term Accenture jobs. This year in all the parts of business and all the Accenture career levels, the company will recognize approx. 5 per cent of their lowest performer employees, and these individuals will lay off out of Accenture. This process of replacement of the employees is consistent with the company’s each year’s action. The company further added in their statement that, they will continue to manage the business for the long term and critical to this the company also assured that they have the right people with the right skills to serve the clients supremely. Accenture in India continues to hire as a part of the company’s compensation programs. Recently the company has acknowledged a number of employees with bonuses and promotion.
According to James Friedman of Susquehanna financial Group (SFG), Accenture has self-governed to enlarge its operating extremity very modestly every year in order to proliferate its market share ever since its Initial Public Offering (IPO) which had started almost two decades ago. Further adding, he stated that he understands these initiatives are necessary to reflect a new market level view for IT companies that are slowing down due to the chains of economic progression struck in the ongoing Pandemic.
Hence to follow the limitations and bolster utilization, he suspects the layoffs of Accenture jobs are necessary. CEO of Hfs Research, Phil Fersht stated that, Accenture is struggling to explain its higher price points for mainstream services and retain the same extremity as pre-pandemic. With a tremendous increase in competition from a holder of Indian Heritage Providers and greater dexterity from SynOps data platform for providing services, there is a necessity of reducing the workforce to maintain the economic stability in this ongoing pandemic.
India having the largest Accenture employee base of two lakh employees may face the worst impact of Accenture layoff. Accenture with regards to this layoff told IANS that, in this pandemic crisis, the company is not planning extraordinary global workforce actions denying the fact that 2 lakh workers of India may face the brunt of unemployment by company. In India, 10,000 people can witness the job cuts due to Accenture layoffs.
The report also stated that the CEO of Accenture expounded that despite cutting down the number of subcontractors and pausing the fresh recruitment, the company is still facing the need to reduce the number. The company had finished the second quarter at the end of February and was growing revenue of eight percent. The company was having a magnificent year. Accenture’s revenue streams have experienced a significant hit due to the ongoing COVID-19 pandemic. According to the reports of Times of India, the revenue of the company grew by 1.3 percent but on the other hand, the firm lowered its revenue forecast from the previous year from 6-8% down to 3-6%.