Accenture Postpones Promotions by 6 Months Globally;
Accenture Postpones Promotions by 6 Months Globally;
Accenture has announced a delay in promotions for most of its employees by six months, reflecting ongoing challenges in the consultancy sector. According to an internal blog post, promotions will now be revealed in june instead of the usual december timeframe. This change was communicated to managing directors earlier this month.
A spokesperson for Accenture clarified that this shift is a permanent adjustment, allowing for better visibility regarding client planning and demand.
Reasons for the Delay
The decision comes amid rising uncertainty in the professional-services industry as clients cut back on spending. Accenture, which employs around 750,000 people worldwide, data-faced a significant drop in its shares earlier this year after revising its fiscal 2024 revenue growth forecast from 5% to a maximum of 3%. The company had previously expanded its workforce significantly during the pandemic to meet increased demand but announced plans to cut 19,000 jobs—about 2.5% of its workforce—over an 18-month period.
Other consulting firms like McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers have also reduced their headcounts in response to the economic slowdown. However, a recent uptick in demand for automation and AI projects has provided some respite.
No Pay Hikes in india and Sri Lanka
In October, Accenture revealed that it would not be offering salary increases to employees in india and sri lanka for 2023, except in cases where it is legally mandated or where specific commitments were made for critical skill roles. The company has a significant presence in india, employing over 300,000 individuals.