Bengaluru: Global IT and consulting giant Accenture has spent approximately $2.3 billion over the past three years and into the first quarter of FY26 on restructuring and business optimisation programmes, according to the company’s latest regulatory filings. The bulk of these costs are linked to employee severance as the firm undergoes a significant realignment of its global workforce for the artificial intelligence (AI)-driven era.
Multi-phase optimisation strategy
Accenture’s Chief Financial Officer Angie Park explained that the company had launched a six-month business optimisation programme in the fourth quarter of FY25, which resulted in a $615 million charge, with another $250 million expected in the first quarter of FY26. Together, this brings the latest restructuring cost to about $865 million.
“The business optimisation programme has two parts: one related to rapid talent rotation, which reflects severance associated with headcount reductions in a compressed timeline, and another related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities,” Park said during the company’s earnings call.
She added that the resulting cost savings will be reinvested in people and business transformation initiatives.
Workforce restructuring and AI readiness
Accenture’s global headcount declined by 11,419 employees sequentially in the September quarter, bringing the total workforce to 7.7 lakh employees. Despite the reduction, the company added nearly 5,000 employees year-on-year, indicating a targeted shift rather than broad downsizing.
CEO Julie Sweet said the firm plans to increase hiring in FY26 across its key markets — the US, Europe, and growth markets — to align with growing demand for digital, data, and AI-based services.
A few months ago, Accenture consolidated its traditional service lines — Strategy, Consulting, Song, Technology, and Operations — into a unified business unit called Reinvention Services, signalling a shift toward integrated, AI-powered delivery.
In an internal video message, Sweet emphasised, “We are, every one of us, reinventors… the leader in our industry and in AI. This is a moment that demands more of us and of each other, as we continue delivering on the promise of technology and human ingenuity.”
Structural change, not downsizing
Industry experts believe Accenture’s moves represent structural transformation rather than cyclical cost-cutting.
Phil Fersht, CEO of HfS Research, noted, “Accenture’s $2.3 billion optimisation charge is a wake-up call for the entire IT and consulting sector. This isn’t cost-cutting — it’s the price of reinvention.”
He added that major IT service providers are rebalancing their workforce from legacy delivery to digital and AI-based operations. “The services industry is being forced to rebuild its delivery engine for an AI-first economy,” Fersht said.
Ray Wang, CEO of Constellation Research, projected that services firms may have to trim up to 25% of their workforce over the next four years to adapt to automation and digital labour trends. “This is that slow easing into the shift,” he remarked.
GenAI success and future investments
Accenture’s focus on Generative AI (GenAI) is already delivering results. The company reported that its GenAI-related bookings nearly doubled to $5.9 billion compared to last year, while revenues tripled to $2.7 billion.
Analysts view this as evidence that Accenture’s heavy investment in workforce transformation and technology alignment is beginning to yield tangible business outcomes.
As the company continues to reshape its talent model, streamline operations, and divest non-strategic assets, it is positioning itself as a leading player in the rapidly evolving AI-first consulting and services market.