An impending recession has already taken its toll on the demand for services as well as ad revenues for big tech and social media. As firms scramble to cut costs, the list of tech giants joining the layoff bandwagon is getting longer, with Amazon and Meta even entering phase two.
Now Accenture has announced 19,000 layoffs as it has been forced to lower its expectations for revenue and profits for the year.
Largest single layoff in tech so far
Hit by lower spending on IT by businesses across sectors, Accenture is slashing its workforce by 2.5 per cent.
Before this massive layoff, the biggest single job cut was executed by Amazon, which sacked 18,000 people last year, and is now firing 9000 more.
Accenture's shares gained 4 per cent after the announcement that 50 per cent of those affected by the layoff will be non-billable corporate staff.
Accenture's lower forecast follows the same by its market peer Cognizant, as the global economy prepares for a slowdown.
Job loss abroad triggers gains for Indian firms
The announcement comes a day after Accenture acquired a Bengaluru-based AI firm Flutura for an undisclosed amount.
The layoffs abroad are also expected to bring more orders for Indian IT firms, since companies are looking for cost-efficient production after firing their own staff.
This is visible from the resumption of hiring activity at IT majors such as HCL, Wipro, Infosys and TCS in India, even a employees of global big tech firms lose jobs.
