Accenture, one of the world’s leading professional services firms, has laid off more than 11,000 employees over the past three months as part of a sweeping global restructuring initiative. The company confirmed that it has spent over $2 billion on “business optimisation” in recent years, with a large share of that going toward severance packages and workforce adjustments.

The restructuring, which began in the final quarter of fiscal year 2025, aims to align Accenture’s operations with the fast-changing demands of automation, artificial intelligence (AI), and evolving client needs. According to the firm’s recent disclosures, its global headcount fell to 7,79,000 by the end of August 2025 — down from 7,91,000 just three months earlier. Severance and related expenses alone reached $615 million in the last quarter, and the company expects to spend an additional $250 million in the current quarter.

While the cuts are significant, Accenture’s leadership described them as part of a necessary evolution to remain competitive. The restructuring is expected to save the company over $1 billion once completed. The process, according to filings, will continue through November 2025.

The optimisation strategy is centred on two core objectives — workforce rationalisation and divestment of non-strategic acquisitions. During the most recent quarter, 11,419 roles were eliminated globally. Interestingly, despite these reductions, Accenture’s total headcount has still grown by nearly 5,000 employees over the past year, driven by hiring in high-growth areas such as data, cloud, and AI.

Leading the charge, Accenture CEO Julie Sweet highlighted the urgency of transformation amid accelerating technological shifts. “We are moving on a compressed timeline,” she told investors. “Where reskilling simply isn’t a viable path, we are making the difficult choice to exit people,” she added. Sweet emphasised that the company continues to prioritise reskilling as its first option, but acknowledged that not all roles can transition to new business demands.

A key pillar of Accenture’s new direction is its aggressive push into AI. The company reported that generative AI projects accounted for $5.1 billion in new bookings over the past fiscal year — a sharp rise from $3 billion the year before. Today, Accenture employs 77,000 AI and data professionals, nearly double the 40,000 it had two years ago. These specialists, referred to internally as “reinventors,” represent the company’s commitment to building a future-ready workforce.

Accenture’s move reflects broader changes across the IT and consulting landscape, where automation and AI are reshaping traditional roles. Many firms are streamlining operations as clients tighten budgets and governments adjust digital contract structures.

Industry observers view Accenture’s restructuring as part of a larger shift within the sector — one where human expertise must increasingly coexist with machine intelligence. In a similar development, Tata Consultancy Services (TCS) recently announced plans to lay off about 12,000 employees, or roughly 2 per cent of its workforce, underscoring how automation is redefining the consulting and technology workforce globally.