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Accenture to cut up to 900 jobs due to coronavirus impact

The cuts will begin in mid-July and will take place at all levels of the business

Accenture logo on a smartphone

Accenture is to cut as many as 900 UK jobs due to lower demand for its services and the impact of the COVID-19 pandemic on the business. 

The US-owned IT consultancy firm currently has a UK workforce of around 11,000, based in offices in London, Manchester, Newcastle, Edinburgh and more.

According to The Guardian, the job cuts will take place at all levels of the business - including managing directors. Consultation on the cuts will begin in mid-July, Accenture said, with the total number of people to leave the firm by September expected to be between 700 and 900. 

"We went into the crisis with an overcapacity of people relative to demand,” the company said in a note to staff, seen by The Guardian.

"The crisis has caused additional strain on the business due to lower demand and reduced national attrition. In addition, we have identified structural costs that we need to address."

Accenture has already reduced its business costs by decreasing travel, cutting its contractor numbers and pausing its recruitment process. However, the note goes on to reveal that "unfortunately these numbers have not been enough".

Last week, the IT consultancy business warned it may have to put a halt on its hiring process worldwide, with rumours also surfacing that layoffs are also planned in the US. 

"We remain confident in our business in the UK for the long term,” Accenture said in a statement. “We are taking steps now to be able to continue investing in our workforce and our business, ensuring we have the right people with the right skills to best serve our clients and are well-positioned for the future. 

"We have notified our UK people that it is necessary to go into collective employee consultation for a proposed redundancy programme."

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