Accenture is cutting thousands of employees it cannot retrain for artificial intelligence work while simultaneously planning to grow its overall workforce, executives revealed during the company’s Q4 2025 financial results conference call, last week.“We are exiting on a compressed timeline, people where reskilling, based on our experience, is not a viable path for the skills we need,” CEO Julie Sweet said on the call. Yet despite the cuts, Sweet said Accenture expects “to increase our headcount overall across our three markets, including in the US and Europe, reflecting the demand we see in our business.”Chief Financial Officer Angie Park disclosed that Accenture recorded $615 million in restructuring charges in the fourth quarter, primarily for severance tied to workforce reductions. An additional $250 million charge is expected in the first quarter, bringing total costs to approximately $865 million.“These actions will result in cost savings, which will be reinvested in our people and our business,” Park said during the call.

Massive AI skills buildup accompanies workforce cuts

The consulting giant has dramatically expanded its AI capabilities since fiscal 2023, nearly doubling its AI and data professionals to 77,000 people. Sweet said more than 550,000 employees have been trained in generative AI fundamentals.“Advanced AI is becoming a part of everything we do,” Sweet told investors. The company tripled its advanced AI revenue to $2.7 billion in fiscal 2025 and nearly doubled related bookings to $5.9 billion.Accenture’s workforce stood at more than 779,000 at the end of August, down from approximately 791,000 three months earlier. The business optimisation program also includes divesting two acquisitions no longer aligned with strategic priorities.

Strong financial results amid workforce transformation

Despite the restructuring, Accenture reported $69.7 billion in revenue for fiscal 2025, representing 7% growth over the prior year. The company delivered adjusted earnings per share of $12.93, reflecting 8% growth, and generated $10.9 billion in free cash flow.For fiscal 2026, Accenture projects revenue growth of 2% to 5% in local currency, though this includes an estimated 1% to 1.5% impact from its contracting federal business. Excluding the federal headwind, expected growth is 3% to 6%.Sweet emphasised that AI is driving expansion rather than contraction. “We don’t see AI as deflationary. We do see and are seeing it as expansionary similar to every tech evolution we’ve been through,” she said.