Technology consulting firm Accenture (ACN) says it plans to lay off staff who can’t be trained or reskilled on artificial intelligence (AI).
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The move comes amid a broader restructuring strategy at the company, and as Accenture prioritizes AI. In a call with media and analysts, Accenture CEO Julie Sweet said that as AI becomes a larger part of the company’s operations and offerings to clients, it expects employees to “retrain and retool” at scale.
“We are investing in upskilling our reinventors, which is our primary strategy,” said Sweet, adding that the company will cut staff who are not able to reskill and learn how to work with and effectively use AI products and services.
Optimization and Savings
Sweet said Accenture has already reskilled 550,000 workers on the fundamentals of generative AI and outlined a six-month $865 million business optimization program, which includes costs associated with severance packages and workforce reductions.
“We expect savings of over $1 billion from our business optimization program, which we expect that we will reinvest in our business and in our people because it’s so important for our future growth,” said Accenture Chief Financial Officer (CFO) Angie Park on the call. Despite talk of headcount reductions, Accenture has hired 77,000 AI and data professionals so far this year.
Is ACN Stock a Buy?
Accenture’s stock has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 12 Buy, seven Hold, and one Sell recommendations issued in the last three months. The average ACN price target of $291.68 implies 21.68% upside from current levels.
