Accenture to cut up to 900 UK jobs as pandemic hits demand

Company to begin redundancy talks this month with jobs at all levels affected.

Accenture is to cut up to 900 jobs in the UK as the consultancy firm reduces costs in the face of lower demand for its services.

The New York-listed company employs 11,000 people in offices across the UK including in Aberdeen, London and Cambridge.

The UK job cuts will be at all levels, including managing directors, and across all parts of the business. Accenture said consultation on the reductions would start in mid-July and it expected between 700 and 900 people to leave the business by September.

In a note to staff, seen by the Guardian, the company 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 said it had already cut costs by decreasing travel, reducing contractor numbers and pausing recruitment but “unfortunately these numbers have not been enough”.

Accenture warned last week it would have to curb new hires around the world and has been rumoured to be planning job cuts in the US

With much City activity, including mergers and acquisitions and new listings, on hold, advisory firms including Deloitte, EY, PricewaterhouseCoopers and BDO have all been attempting to cut costs in recent weeks mainly by reducing staff pay.

Accenture said in a statement: “We remain confident in our business in the UK for the long term. We are taking steps now to be able to continue investing in our workforce and our business, ensuring we have the right people with the right skills to best serve our clients and are well positioned for the future. We have notified our UK people that it is necessary to go into collective employee consultation for a proposed redundancy programme.”


Source:https://www.theguardian.com/accenture/2020/jul/01/accenture-to-cut-up-to-900-uk-jobs-as-pandemic-hits-demand

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