Accenture to cut 7% of senior executives
25/08/2009
The company is also reducing office space in order to cut costs as it expects lower revenues amid the recession.

Fuente:  www.consultant-news.com    Fecha:  25/08/2009

 Accenture to cut 7% of senior executives

Accenture said that it will reduce its senior-executive ranks by approximately 7%, with 4,800 senior executives that amounts to at least 336 jobs. The company said it will take an approximate charge of $128 million for severance and related costs of workforce reductions in the fourth quarter of fiscal 2009, ending Aug. 31.

“The realignment of our senior-executive workforce will help ensure that Accenture has the right people, skills and capabilities, at the right levels and in the right places,” said William D. Green, Accenture’s chairman & CEO. “The affected executives are highly skilled and valued professionals, and we will be working with them, as appropriate, to help them find new opportunities outside of Accenture that take advantage of their experience and expertise,” he added.

Accenture is also taking steps to reduce excess real estate capacity and will take an approximate charge of $119 million.

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

Accenture continues to expect net revenues for the fourth quarter of fiscal 2009 to be in the range of $5.0 billion to $5.2 billion. The pre-tax restructuring charge includes approximately $22 million of non-cash asset impairments principally related to the global consolidation of excess office space. The remaining $225 million comprises cash-related expenditures primarily for workforce- and office-lease-related costs, the majority of which will affect the company’s cash flows in the first quarter of fiscal 2010.