Accenture Plc reportedly reduced its revenue and profit projections on March 23, and informed that the conglomerate would cut about 19,000 jobs.
Although corporate spending on IT services is affected by the prospects for the global economy, the company became the latest to lay off employees.
Accenture has lowered its expectations for sales and profit because it anticipates that recession-averse businesses will limit their technology spending. Instead of expecting 8% to 11% annual revenue growth, Accenture now expects 8% to 10% local currency growth. Instead of the previous range of USD 11.20 to USD 11.52, the business now anticipates earnings per share to be in the range of USD 10.84 to USD 11.06.
Revenue for the current quarter is expected to be between USD 16.1 billion and USD 16.7 billion, said the company.
The company disclosed that employees at its non-billable corporate functions will be affected by more than half of the layoffs. The company's shares increased 4% before the closing bell.
Competitor Cognizant Technology Solutions reported a slow growth in bookings--contracts that IT service providers anticipate obtaining in the future--in the preceding month. This came about as a result of their first-quarter sales prediction being lower than what the market anticipated.
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