Accenture to lay off 336 executives:
Accenture, a business
consulting and outsourcing company is likely to lay off around 336
senior-level managers as part of a broad-based restructuring effort.
William Green, CEO, Accenture said, "We are taking this step to
position Accenture better for both short-term and long-term economic
improvement growth and profitability."
The company has about 177,000 employees globally, of which 4,800 are
senior-executive employees. The lay off is likely to be completed by
the end of November 2009. The company said that the reductions would
cost about $247 million in the fourth quarter, which ends on August 31.
Out of $247 million, about $128 million of the charge is for severance
and related costs of workforce reductions at the senior executive level
and $119 million linked to reduction of excess office space. The
company said that the space reductions would be completed by the end of
August, while the job cuts are expected to be completed in the first
quarter of fiscal 2010.
According to a projection by Goldman Sachs Group, global technology
spending will decline by eight percent this year. Accenture said that
it continued to expect net revenues for the fourth quarter in the range
of $5 billion to $5.2 billion with operating margins between 13.4
percent and 13.7 percent. But the company also added that the
restructuring charges will likely reduce its earnings per share for
both the fourth quarter and the full year by 24 cents.
The company had generated net revenue of $23.39 billion for the fiscal
ended August 31, 2008. In the last one year, the stock of Accenture has
climbed by 11 percent on the New York Stock Exchange (NYSE).
consulting and outsourcing company is likely to lay off around 336
senior-level managers as part of a broad-based restructuring effort.
William Green, CEO, Accenture said, "We are taking this step to
position Accenture better for both short-term and long-term economic
improvement growth and profitability."
The company has about 177,000 employees globally, of which 4,800 are
senior-executive employees. The lay off is likely to be completed by
the end of November 2009. The company said that the reductions would
cost about $247 million in the fourth quarter, which ends on August 31.
Out of $247 million, about $128 million of the charge is for severance
and related costs of workforce reductions at the senior executive level
and $119 million linked to reduction of excess office space. The
company said that the space reductions would be completed by the end of
August, while the job cuts are expected to be completed in the first
quarter of fiscal 2010.
According to a projection by Goldman Sachs Group, global technology
spending will decline by eight percent this year. Accenture said that
it continued to expect net revenues for the fourth quarter in the range
of $5 billion to $5.2 billion with operating margins between 13.4
percent and 13.7 percent. But the company also added that the
restructuring charges will likely reduce its earnings per share for
both the fourth quarter and the full year by 24 cents.
The company had generated net revenue of $23.39 billion for the fiscal
ended August 31, 2008. In the last one year, the stock of Accenture has
climbed by 11 percent on the New York Stock Exchange (NYSE).
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