BUSINESS

Accenture to lay off senior execs by 7%

Source:PTI
August 21, 2009 11:36 IST

Global management consulting and outsourcing company Accenture is reducing its senior executive workforce by seven per cent besides, pruning real estate capacity as part of restructuring efforts.

Restructuring is expected to cost the company $247 million in the fourth quarter of fiscal 2009 ending August 31.

Of the costs, about $119 million would be related to reduction of excess office space globally and the remaining for severance and related costs of workforce reduction.

The seven per cent workforce reduction would mean over 300 senior-executives would be laid-off.

"As part of our drive to deliver high performance. . . we are acting boldly to position Accenture better for both short-term and long-term economic improvement growth and profitability," Accenture chairman and CEO William Green said in a statement on Friday.

The New-York based company expects space reductions to be completed by end of the current fiscal and the workforce actions to be completed during the first quarter of fiscal year 2010.

Prior to the cut, the company had 4,800 senior-executive employees and a total of 177,000 employees globally.

Green said the company is taking steps to ensure that it has the right cost structure to support the business going forward.

Source: PTI
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