Chicago: Global management consulting and outsourcing company Accenture is reducing its senior executive workforce by seven percent besides, pruning real estate capacity as part of restructuring efforts.
Restructuring is expected to cost the company USD 247
million in the fourth quarter of fiscal 2009 ending August 31.
Of the costs, about USD 119 million would be related to
reduction of excess office space globally and the remaining
for severance and related costs of workforce reduction.
The seven percent workforce reduction would mean over
300 senior-executives would be laid-off.
"As part of our drive to deliver high performance... we
are acting boldly to position Accenture better for both
short-term and long-term economic improvement growth and
profitability," Accenture Chairman and CEO William Green said
in a statement today.
The New-York based company expects space reductions to be
completed by end of the current fiscal and the workforce
actions to be completed during the first quarter of fiscal
Prior to the cut, the company had 4,800 senior-executive
employees and a total of 177,000 employees globally.
Green said the company is taking steps to ensure that it
has the right cost structure to support the business going
Reduction of excess office space globally would increase
the productivity of the company’s fixed cost-base and generate
ongoing savings, while the workforce reduction has been
designed to ensure that the company’s global workforce is
properly aligned to "best serve the evolving needs of its
clients and its business".
"The realignment of our senior-executive workforce will
help ensure that Accenture has the right people, skills and
capabilities, at the right levels and in the right places,"
the statement said.
Accenture expects net revenues for the fourth quarter of
fiscal 2009 to be in the range of USD 5 billion-USD 5.2
billion, it added.
First Published: Friday, August 21, 2009, 11:12