Global IT major Accenture has announced that they will fire 900 employees, as business is severely hit due to coronavirus pandemic, and projects are slipping away.
Will India get impacted?
Accenture Firing: No Impact In India
Accenture has announced that they will fire 900 employees in the UK, and there will be no impact in India as of now.
900 employee is 8% of their entire workforce of UK.
Accenture had already declared “an overcapacity of people relative to demand” in March, and the outcome is clearly evident now, as between 700 to 900 employees will be fired as part of their ‘planned cuts’.
Accenture has confirmed this development.
The Guardian newspaper has accessed internal memo by Accenture management on these layoffs, and as per the memos, attrition rate slowed down in the company due to the pandemic, and this impacted their future outlook.
Firing 900 employees seemed the last resort.
Accenture employes around 11,000 employees in the UK across Aberdeen, London and Cambridge.
Reason Why Accenture Is Firing Employees
The process of this mass-layoff will start in the mid-July, and by September, 900 employees will be asked to leave.
The firing is being done across various departments, and as per the leaked memo, even managing directors will not be spared.
The reason for the firing, as informed by Accenture is slowdown in business, over capacity of employees, less demand for work, and decrease in attrition rate.
Accenture said, “We went into the crisis with an overcapacity of people relative to demand. The crisis has caused additional strain on the business due to lower demand and reduced national attrition. In addition, we have identified structural costs that we need to address.”
The company has already reduced travel, removed several subcontractors and stopped hiring, but these measures were not enough it seems,
The company said, “We remain confident in our business in the UK for the long term.”
We will keep you updated, as more details come in.
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