Business
Accenture Braces For Slowdown: Layoffs Loom, $865M In Deals Scrapped
Last Updated:
Accenture is cutting jobs, exiting parts of its portfolio as it braces for slower growth in FY26, highlighting mounting pressure in IT services sector
Accenture (File Photo)
Accenture is cutting jobs and exiting parts of its portfolio as it braces for slower growth in FY26, highlighting mounting pressure across the global IT services sector despite sustained investment in AI and cloud.
CEO Julie Sweet said the company is “exiting, on a compressed timeline, people where re-skilling is not a viable path for the skills we need,” during its September 25 earnings call. She did not provide a layoff figure, but headcount decreased by approximately 7,000 in Q4 FY25, reducing the workforce to roughly 770,000.
The restructuring comes amid moderating growth and softer client demand, even as Accenture doubles down on generative AI and cloud offerings. “We continue to see pockets of strong AI-driven demand, [but] overall growth in our key markets is moderating,” Sweet said.
Accenture now expects FY26 revenue to rise just 2–5% in local currency—well below last year’s 7%—excluding a further 1–1.5-point drag from its slowing U.S. federal business. That unit has been hit by procurement disruptions under the Department of Government Efficiency (DOGE), the Elon Musk-led agency reshaping federal contracts.
CFO Angie Park said the company will prioritise operational efficiency and higher-return investments, with plans to divest about $865 million in non-core assets and exit under-performing acquisitions.
Despite the cuts, Accenture said it will keep hiring and re-skilling in priority areas to support delivery, and expects headcount growth in the U.S. and Europe during FY26.
The realignment underscores broader turbulence in IT services: Tata Consultancy Services has already laid off more than 12,000 employees this year, citing skill mismatches and slowing demand.
Accenture’s shares slipped about 2% after the earnings release, reflecting investor unease over the weaker growth outlook and strategic pullbacks.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 26, 2025, 08:45 IST
Read More
Business
Home heating oil: ‘Most of my pension has gone on home heating oil’
Rising heating oil prices are hitting Northern Ireland harder than the rest of the UK – here’s everything you need to know.
Source link
Business
FDA vaccine head will step down in April after string of controversial decisions
The logo for the Food and Drug Administration is seen ahead of a news conference at the Health and Human Services Headquarters in Washington, April 22, 2025.
Nathan Posner | Anadolu | Getty Images
A key U.S. Food and Drug Administration official who oversees vaccines and biotech treatments will step down from the agency following multiple decisions that raised concerns within the industry.
Vinay Prasad, director of the Center for Biologics Evaluation and Research, will leave the FDA at the end of April, an agency spokesperson confirmed on Friday. It is his second departure from the position: He briefly left the post in July following backlash over his regulatory decisions, and returned only two weeks later in August.
In a post on X, FDA Commissioner Marty Makary said the FDA will appoint a successor before Prasad returns next month to the University of California San Francisco, where he taught before taking the FDA position last year. Makary said Prasad “got a tremendous amount accomplished” during his tenure at the agency.
Prasad’s decision to step down comes after criticism of the FDA mounted within the biotech and pharmaceutical industry and among former health officials. In the past year, the agency has denied or discouraged the approval applications of at least eight drugs, according to RTW Investments, after taking issue with data the companies used to support their applications. The FDA also initially refused to review Moderna’s flu shot before it later reversed course.
All of those companies accused the FDA of reversing previous guidance about the evidence they could use to back their applications, sparking criticism within the industry that an unreliable regulatory process could stifle development of drugs for hard-to-treat diseases.
A former FDA official who spoke to CNBC on the condition of anonymity to speak freely on the issue called the reversals the worst kind of regulatory uncertainty because companies say they are being told one thing and then experience another.
In a statement earlier Friday, an FDA spokesperson said there was “no regulatory uncertainty,” adding the agency “makes decisions based on the evidence, but does not make assurances about outcomes.” The spokesperson said the FDA is “conducting rigorous, independent reviews and not rubber-stamping approvals.”
The most recent controversy came after the FDA discouraged UniQure from applying for expedited approval of its experimental treatment for Huntington’s disease.
The agency, which underwent staff cuts and an overhaul under Health and Human Services Secretary Robert F. Kennedy Jr., has faced broader backlash for its drug and vaccine approvals process. Critics have worried the agency could stifle the development of new treatments and risk the safety of patients.
The Wall Street Journal earlier reported Prasad’s departure.
Business
Oil price at two-year high after Qatar minister warns all Gulf production could stop
Energy Minister Saad al-Kaabi says oil could hit $150 a barrel if the Iran conflict continues over the coming weeks.
Source link
-
Business1 week agoAttock Cement’s acquisition approved | The Express Tribune
-
Politics1 week agoUS arrests ex-Air Force pilot for ‘training’ Chinese military
-
Business1 week agoIndia Us Trade Deal: Fresh look at India-US trade deal? May be ‘rebalanced’ if circumstances change, says Piyush Goyal – The Times of India
-
Fashion1 week agoPolicy easing drives Argentina’s garment import surge in 2025
-
Politics1 week agoWhat are Iran’s ballistic missile capabilities?
-
Sports1 week agoLPGA legend shares her feelings about US women’s Olympic wins: ‘Gets me really emotional’
-
Sports1 week agoSri Lanka’s Shanaka says constant criticism has affected players’ mental health
-
Entertainment1 week agoBobby J. Brown, “The Wire” and “Law & Order: SUV” actor, dies of smoke inhalation after reported fire
