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Accenture to Cut 400 Jobs in Ireland as Part of Global Restructuring Plan

Accenture, the global consultancy firm, has announced that it will cut 400 jobs from its workforce in Ireland as part of its plans to reduce its global headcount by 19,000.

The company currently employs over 6,500 people across Ireland, and had announced plans in 2021 to create 500 new jobs in the next three years, with most of these roles to be based in Cork and the wider Munster area. The job cuts in Ireland will form part of a collective redundancy programme, with the company informing the Department of Enterprise and Minister Simon Coveney of its plans.

In a statement to the Irish Examiner, an Accenture spokesperson said, “After a careful review of our business operations, we can confirm that we are going into collective employee consultation for a proposed redundancy programme that is anticipated to affect approximately 400 of our people in Ireland.” The news follows recent announcements of job cuts in Ireland’s tech sector, with over 2,300 job losses in recent months according to the Central Bank of Ireland.

Accenture’s global restructuring plans will affect around 19,000 of its staff worldwide, and the news caused a surge in the company’s share price, which rose by almost 8% following the announcement.

The company has cited high inflation as a reason for its reduced revenue and profit forecast, with the company now expecting annual revenue growth to be between 8% and 10%, compared to its previous projection of an 8% to 11% increase. Rival consultancy firm Cognizant Technology Solutions also recently forecasted muted growth in bookings for 2022, while IBM Corp and India’s top IT services firm Tata Consultancy have both flagged weakness in Europe due to the impact of the Ukraine conflict on client spending.

Despite these challenges, Accenture CEO Julie Sweet remains focused on “executing compressed transformations,” referring to businesses’ efforts to become leaner in the current turbulent economic climate.

The job cuts in Ireland are likely to be a blow to the country’s tech sector, which has been an important driver of economic growth in recent years. However, the government has already taken steps to support the sector, including the establishment of a new “digital hub” in Cork, which is intended to attract new businesses to the area.

In the longer term, there are reasons to be optimistic about the prospects for Ireland’s tech sector, with the country’s highly skilled workforce and favourable tax regime likely to continue to attract global companies in the future. However, in the short term, the impact of the Covid-19 pandemic and other global economic challenges are likely to continue to create uncertainty and challenges for the sector.

Despite the challenges facing the sector, many experts remain optimistic about its long-term prospects. Ireland’s highly educated workforce and favourable tax regime continue to make it an attractive location for global tech companies, and the country has a growing reputation as a centre for innovation and entrepreneurship.

In recent years, Ireland has also become increasingly focused on developing its domestic tech industry, with initiatives such as the creation of a new “Innovation District” in Dublin and the launch of a new start-up accelerator programme. These efforts have helped to support the growth of a vibrant tech ecosystem in the country, which includes a mix of multinational corporations and home-grown start-ups.

Looking ahead, it seems likely that Ireland’s tech sector will continue to play an important role in the country’s economic growth, despite the challenges presented by the current global economic climate. With continued investment in research and development, infrastructure, and skills training, there is every reason to believe that Ireland can remain a leading player in the global tech industry for years to come.

However, in the short term, the news of job cuts at Accenture and other companies is likely to be a cause for concern for many workers in the sector. As the economy continues to recover from the impact of the Covid-19 pandemic, it will be important for the government and industry leaders to work together to support those affected by job losses, and to ensure that the sector as a whole remains strong and resilient in the face of ongoing challenges.

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