Accenture is cutting staff it can't retrain in the age of AI — but it still plans to hire more people

Accenture is undergoing a significant transformation to align its workforce with the demands of artificial intelligence. During a recent earnings call, executives revealed that the company is letting go of employees who cannot be retrained to meet the new skill requirements in AI, while also planning to hire more staff in the upcoming fiscal year. CEO Julie Sweet emphasized that upskilling is a top priority for the company, yet acknowledged the necessity of parting ways with certain employees. "We are exiting on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need," she stated. Despite these layoffs, Sweet projected a net increase in headcount across various markets, including the US and Europe. The company had over 779,000 employees as of late August, a reduction from approximately 791,000 three months prior. Chief Financial Officer Angie Park indicated that Accenture incurred about $615 million in restructuring charges in the last quarter, primarily for severance costs, and expects this to rise to around $865 million after additional charges. As part of its strategy, Accenture is also divesting two acquisitions, which Park noted would lead to cost savings aimed at reinvesting in personnel and business development. While she did not provide specific hiring figures, the firm has significantly bolstered its AI workforce, nearly doubling its team of AI and data specialists to 77,000 since fiscal 2023. Furthermore, over 550,000 employees have received training in generative AI fundamentals. Sweet described advanced AI as integral to the company’s operations, asserting that it is perceived as "expansionary" rather than "deflationary." In fiscal 2025, Accenture reported revenues of $69.7 billion, reflecting a 7% increase from the previous year, although its shares dipped by 2.7% following the earnings announcement. This strategy highlights a broader trend in the industry where companies are reshuffling talent to meet new technological demands. Many firms, including big tech giants, are making similar moves—reducing staff in less critical areas while expanding hiring in sectors focused on data, cloud computing, and AI consulting. Companies like Microsoft and Meta have also experienced job cuts but have managed to maintain or increase their overall headcount through targeted recruitment efforts. In contrast, others like Klarna have struggled, reallocating staff to different roles after announcing layoffs.