(Bloomberg) — Accenture Plc plans to delay most of its staff promotions by six months, the latest sign of a lingering recession that is hitting the entire consulting industry.
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The Dublin-based tech giant told employees in an internal blog post last week that it will announce most of its promotions in June instead of the usual December, people familiar with the matter said, declining to be named to discuss non-public information.
The company had informed managing directors of the schedule change earlier this month, one of the people said. A representative for Accenture, which has about 750,000 employees in 120 countries, said the company was “permanently changing our primary promotion date from December to June, when we have better visibility into our clients’ schedules and demand.”
The move by the New York-listed company is a further indication of the uncertainty plaguing the professional services industry as clients cut back on spending. Accenture shares fell by the most in four years in March after it cut its outlook, saying revenue for fiscal 2024 would likely grow 3%, down from a previous forecast of 5%.
Competitors including McKinsey & Co., Ernst & Young and PricewaterhouseCoopers are also cutting jobs to cope with the economic downturn, although the recent surge in demand for automation and artificial intelligence projects has helped.
Like its peers, Accenture went on a hiring spree during the coronavirus pandemic in response to increased demand. More than a year ago, the company announced it would cut 19,000 jobs — about 2.5% of its workforce at the time — over the next 18 months.
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