Accenture lays off 549 workers at Austin’s Area workplace
Tech staffing agency Accenture is shedding greater than 500 workers in Austin amid a wider wave of cuts by expertise employers.
Accenture, an Irish-American contract agency centered on data expertise providers and consulting, is taken into account one in every of Austin’s largest expertise employers and has a major Texas presence with workplaces in Austin, Dallas, Houston and San Antonio. The corporate has contracts with massive expertise giants, together with Google and Fb parent-company Meta, however a few of these contracts led to current months because the tech business at massive seems to be to cut back prices.
Accenture has roughly 5,900 workers in Austin, in keeping with the Austin Chamber of Commerce, which tracks the area’s prime expertise employers. The layoffs come as various expertise giants, together with these with massive Austin presences, have minimize lots of of workers in current months amid an unsure financial surroundings.
The layoff numbers had been reported in a WARN letter, which stands for Employee Adjustment and Retraining Notification Act. Employers are federally mandated to offer discover to state governments within the occasion of main layoffs.
In a press release, an Accenture spokesperson mentioned Wednesday the corporate adjusts its workforce every now and then on ongoing initiatives to fulfill the wants of its shoppers.
WARN notices:See which corporations introduced layoffs and closings
The Austin layoffs comply with a wider announcement Accenture made in March in an SEC submitting that mentioned the corporate can be chopping 19,000 workers globally, or about 2.5% of its workforce, over the subsequent 18 months. On the time, Accenture mentioned it anticipated greater than half of the cuts to be in nonbillable company capabilities, which the corporate has been working to streamline in current months together with another operations, to cut back prices.
The WARN discover blocks out what positions in Austin are affected, however it does point out it features a vary of positions. The WARN discover mentioned that as much as 549 folks can be minimize, with their final days between June 27 and Sept. 8.
“This motion is because of a change in consumer contract necessities and anticipated to be everlasting,” the discover mentioned.
The cuts comply with the corporate’s speedy progress in recent times. As of March, the corporate had greater than 738,000 workers, up from 699,000 workers on the finish of February 2022, in keeping with the SEC submitting.
In line with the discover, Accenture’s affected facility is at 11800 Alterra Parkway within the Area. The Accenture web site lists a number of Austin workplaces, although it doesn’t record this workplace area.
However the Area handle is identical as one in every of Fb’s Austin workplaces, and Accenture does have contracts with Meta to offer the tech large with contract workers.
Extra:Fb, Instagram father or mother firm Meta to chop one other 10,000 staff; unclear if any in Austin
Accenture mentioned the cuts come “as a result of a change in consumer contract phrases” which might be anticipated to be everlasting.
Regardless of the variety of cuts, within the discover, the corporate mentioned the Austin facility won’t be closing. The discover mentioned that every one the affected workers have already got been notified or can be not less than 60 days earlier than their final day.
“We are going to rescind an worker’s termination if, through the discover interval, they’re able to acquire a brand new position inside Accenture and we are going to assist their efforts to seek for a brand new position,” the WARN discover mentioned.
The cuts at Accenture come as different tech giants let go of hundreds of workers. Trade specialists mentioned the Central Texas tech workforce has undoubtedly seen results from the reductions, together with these at corporations with massive Austin workforces together with Google, Meta and Austin-based Tesla.
In current months that has included Intel, which final week confirmed it could be shedding workers nationally in positions throughout the corporate. The corporate, which additionally put its Southwest Austin workplace in the marketplace this yr, employed about 2,100 folks in Austin as of 2022, however Intel declined to reveal the variety of positions that may very well be affected nationally or in Central Texas.
Throughout a Tesla shareholders assembly Tuesday, CEO Elon Musk predicted the continued financial uncertainty will proceed for not less than 12 extra months, and, whereas he anticipated Tesla would come out on the opposite aspect sturdy, he anticipated some corporations will go bankrupt.
Extra:AI robots, Cybertrucks and extra: 6 takeaways from Tesla’s shareholder assembly
Different corporations chopping workers in current months embody Spherical Rock-based Dell Applied sciences, which introduced it was shedding 6,650 workers globally, or about 5% of its workforce, to organize for the financial surroundings.
In March, Austin-based jobs web site Certainly introduced cuts anticipated to have an effect on about 15% of its international workforce as a result of a cooldown within the job market and lowered demand for its expertise. That very same month, Meta, which had about 2,000 workers in Austin previous to layoffs, introduced its newest spherical of cuts in March, shedding 10,000 workers nationally, although it didn’t say if any of the layoffs can be in Austin.
Extra:Intel slashes jobs nationally, to promote Austin workplace amid wider tech business uncertainty
