Accenture’s Harsh AI Reality Check: 11,000 Job Cuts

Accenture has cut more than 11,000 jobs in just three months, and says more exits are likely for employees who can’t be “retrained” for the AI era. The company is calling it a rapid restructuring, part of the larger shakeup that is sweeping across tech and consulting.

Headcount fell from 791,000 to 779,000 between May and August. Severance and restructuring costs have already hit $615 million and are expected to climb to $865 million. Still, Accenture maintains it’s not shrinking, it’s reshaping its workforce.

“We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need,” CEO Julie Sweet told analysts.

Shifting talent needs: upskilling for AI

Accenture is shifting away from traditional consulting roles and going all-in on AI. The company now has 77,000 AI and data specialists, which is almost double the number it had just two years ago, and has trained more than half a million employees in the basics of generative AI.

Sweet emphasized that “our No. 1 strategy is upskilling,” but for those who can’t adapt quickly enough, the company is showing little patience. In her words, “Advanced AI is becoming a part of everything we do.”

And the numbers back that up. Generative AI projects generated $5.1 billion in bookings this year, up from $3 billion in 2022. Accenture says savings from restructuring will be funneled back into its people and new business lines.

Market headwinds remain

Beyond AI, Accenture is still dealing with some old-school headaches. Demand for shorter consulting projects has slowed as clients trim budgets, and the U.S. federal government, once 8 percent of revenue, is also tightening its purse strings.

Even with those pressures, the company reported $69.7 billion in revenue for fiscal 2025, a 7 percent increase, with net income rising 6 percent to $7.83 billion. However, the outlook is less rosy, with projected growth of just 2–5 percent next year. Investors weren’t thrilled, as expected, and shares dropped 2.7 percent on Thursday, the lowest since late 2020.

What this means for consulting

Accenture’s approach highlights the broader industry trend of companies rotating their talent. Employees without AI-aligned skills are being cut, while thousands of new hires are being brought into cloud, data, and AI-focused roles. Tech giants like Microsoft and Meta have followed similar playbooks.

For consultants, the writing is on the data center wall: adapt quickly or risk being left behind. The consulting model is shifting toward large-scale digital transformation anchored in AI, and the pace leaves little room for gradual learning curves.

Accenture’s moves reflect a broader shift in the industry. AI isn’t just reshaping workforces; it’s redefining partnerships and service models. For more on how these changes are playing out in the channel, see Q&A: The New Rules of Channel Partnerships in the AI Era with Hitachi Vantara’s Peter Bocquet.