Accenture (NYSE:ACN) layoffs are a hot topic among traders on Thursday after the IT company announced a 2.5% cut to its workforce.
According to Accenture, these job cuts will see it laying off a total of 19,000 employees. The company points out that over half of these employees will be from its non-billable corporate functions.
The Accenture layoffs come as the company tightens its belt to deal with a worsening economy. This comes alongside rising inflation, which has caused a string of headcount reductions at various tech companies over the last few months.
Erik Bradley, the Chief Engagement Strategist at Enterprise Technology Research, backed this idea up. Bradley believes “a very difficult environment” is on the way for consulting firms. That opinion is based on a survey of 1,000 IT decision-makers by the research firm, Reuters notes.
Accenture Also Released Earnings
The company’s latest earnings report was positive, with adjusted earnings per share of $2.69 and revenue of $15.8 billion. For comparison, Wall Street was expecting adjusted EPS of $2.50 alongside revenue of $15.59 million.
While that’s good news, the company did lower its guidance for 2023. Accenture now expects adjusted EPS of between $10.84 and $11.06 and revenue growth between 8% and 10% for the year. Previously, the company had had an outlook of $11.20 to $11.52 with revenue growth of between 8% and 11%.
ACN stock is up 3.8% as of Thursday morning.
There’s more stock market news for traders to read about below!
We’ve got all of the latest stock market coverage investors need for Thursday! Among that is what has shares of Bed Bath & Beyond (NASDAQ:BBBY), AMC Entertainment (NYSE:AMC) and Cidara Therapeutics (NASDAQ:CDTX) stock moving today. You can read up on all of that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.