Accenture to promote 50,000 staff globally amid consultancy slowdown

The Accenture promotions will take place in June, which will now replace the traditional December round of promotions

Accenture Plc will promote around 50,000 employees worldwide in June, a move aimed at lifting morale following a six-month delay prompted by declining demand for consulting services, according to a report by Bloomberg. The promotions will span multiple regions, with approximately 15,000 in India, 11,000 across Europe, West Asia and Africa, and 10,000 in the Americas.

 

The June cycle will now replace the traditional December round of promotions, marking a permanent shift in Accenture’s promotion calendar. The company, which employs about 801,000 people globally, said the new timing offers greater alignment with client demand and budget cycles. 

ALSO READ: Accenture warns of contract delays, cancellations amid US spending cuts

 

 

Slowdown in consultancy service demand

Accenture is one of several major consulting firms navigating a prolonged industry-wide slowdown, following a post-pandemic hiring surge. The firm cut 19,000 jobs in 2023 amid reduced client spending and heightened uncertainty across global markets. Rival firms, including McKinsey & Co, Ernst & Young, and Deloitte, have also announced layoffs or cost-cutting measures in response to the same pressures.  

 

The company acknowledged in its internal communication that profitability had taken a hit, with operating margins contracting compared to the previous year. While some base salary increases will be offered in growth areas, bonuses and equity awards will be reviewed in December. 

 

Accenture revenue, profit growth

Accenture shares have faced volatility this year, sliding in March after the company trimmed its revenue forecast for 2024 to a maximum of 3 per cent, down from an earlier estimate of 5 per cent. Despite this, the consultancy firm, which follows a September-to-August financial year, reported revenue of about $65 billion, an $800 million increase from the prior year. 

 

The company also returned $7.8 billion to shareholders through $4.5 billion in share repurchases and $3.2 billion in dividends.

  ALSO READ: Accenture warns of contract delays, cancellations amid US spending cuts