Accenture Spends $2 Billion on Layoffs Amid AI-Led Restructuring

Accenture has spent over $2 billion in the past three years on what it calls “business optimisation” — a restructuring initiative that has resulted in massive layoffs. The company reduced its global workforce by more than 11,000 employees in the past quarter alone, citing automation and changing industry demands as key drivers.

According to company filings, Accenture’s global headcount fell from 791,000 to 779,000 by the end of August 2025. Severance-related expenses totalled $615 million in the last quarter, with another $250 million projected in the ongoing quarter. While the restructuring has been costly, it is expected to save the company over $1 billion in the long term.

The optimisation programme, launched in the final quarter of fiscal 2025, focuses on two primary areas — workforce adjustment and divestment of non-strategic acquisitions. Leading the transformation, CEO Julie Sweet said the company is adapting rapidly to new technologies. “Where reskilling isn’t viable, we are making the difficult choice to exit people,” she told investors, underscoring the focus on efficiency and digital readiness.

AI Takes Centre Stage in Accenture’s Strategy

Insiders reveal that the growing role of artificial intelligence has been a major factor behind the layoffs. According to a business analyst at the company, many projects have stalled, leaving a number of employees “on the bench.” The firm is investing heavily in AI while simultaneously streamlining its workforce.

Generative AI projects brought in $5.1 billion in new bookings in the last financial year — up from $3 billion the year before. Accenture now employs 77,000 AI and data professionals, nearly double the number from two years ago. The company views these experts as essential to its future growth, branding them as “reinventors.”

While reskilling remains a core part of its strategy, Accenture acknowledges that reductions are unavoidable in areas where redeployment isn’t possible.

Industry-Wide Shift Toward AI-Driven Workforces

Accenture’s restructuring mirrors a broader industry trend, with leading tech firms pursuing leaner, AI-focused teams. Recently, Tata Consultancy Services (TCS) announced plans to lay off around 12,000 employees, roughly 2% of its workforce, amid the ongoing shift toward automation.

Accenture’s overhaul underscores how AI is redefining employment structures across the technology sector — replacing traditional roles while creating demand for new, high-skilled positions in data and automation.