Source: NDTV

IT Giant Accenture to layoff at least 5% of its global workforce. The company has taken this move due to the COVID19 pandemic cases. The business operations have trimmed due to the surge of coronavirus cases and thus the IT consulting firm has taken the decision.

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Accenture employees around 200,000 employees in India alone and close to 500,000 overall. The company says that they generally layoff 5% of employees as per the performance indicators and replace them as they remain in demand. However, this year, the company is not in the demand scenario and thus the replacement is now out of the consideration.

Julie Sweet, Chief Executive of Accenture said that the company has already cut the subcontractors and has halted all fresh recruitment. However, as per her, the company is still not in a position for sustainable operation and needs to further reduce headcount. As per the Australian Financial Review, this was communicated in an internal global staff meeting which was streamed online. Ms Sweet also spoke about the business context of transitioning out of the employees.

She said that if the company does not replace the employees, then they can continue to invest and preserve the people with low chargeability when the market comes around. She also confirmed that for the current financial year, the company has identified more than 5% of people who need improvement. They want to have the performance chart ready in case any action needs to be taken further.

Accenture is one of the biggest IT Consulting firms in the world. Many experts believe that this might be the trend for many consulting firms as well.