Technology firm Accenture is reportedly delaying the majority of its staff promotions by six months, reflecting a continued downturn impacting the broader consultancy sector.
In an internal blog post last week, the tech firm informed employees that most promotions will be announced in June instead of the usual December timeframe, according to sources who spoke to Bloomberg.
The company initially notified managing directors about the schedule change earlier this month, one of the sources added.
A representative for Accenture said the firm is “permanently changing our primary promotion date from December to June, which is when we have better visibility of our clients’ planning and demand.”
Reasons For Delay
According to the Bloomberg report, the decision by the New York-listed Accenture, which employs around 750,000 people across 120 countries, highlights the growing uncertainty in the professional-services sector as clients reduce spending.
Accenture’s shares saw their steepest drop in four years this past March after the company revised its fiscal 2024 revenue outlook, predicting growth of up to 3%, down from the previous estimate of 5%.
Like many of its competitors, Accenture aggressively expanded its workforce during the pandemic to meet rising demand. Over a year ago, the company announced plans to cut 19,000 jobs—about 2.5% of its staff at the time—over an 18-month period.
Other consulting firms, including McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, have also reduced headcounts amid the slowdown. However, a recent surge in demand for automation and AI-related projects has offered some relief.
Accenture Skips Pay Hikes in India, Sri Lanka
Last October, Accenture announced that it would not be providing salary increases to its employees in India and Sri Lanka in 2023, except where legally required or where commitments were made in critical skill areas. The company employs over 300,000 people in India.
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