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Accenture to cut 85 to 100 jobs due to uncertain economy

Accenture to cut 85 to 100 jobs due to uncertain economy

IT outsourcing firm Accenture will shed between 85 and 100 consulting positions from its Australian operation from the end of August. The cuts are part of a global cost-reduction program, cutting 1000 jobs, to adapt to an uncertain economic climate according to the company.

A local company spokesman confirmed yesterday that the Bermuda-based company will realign its workforce in the Asia-Pacific region.

He said the realignment will take place "in order to match the skill sets" of its people "more closely [with] market needs and meet client demands.

"As a result of realigning skill sets, as well as the current challenging economic conditions, Accenture in Australia has targeted workforce reductions of between 85 and 100 consulting positions across all levels, from analyst through to associate partner," the spokesman said.

Most job cuts in Australia, where Accenture employs about 2000 people, will take place at the end of the firm's 2002 fiscal year on August 31, according to the spokesman.

All redundant staff will receive job-seeking consultancy and placement assistance from an external recruitment firm, he said.

At the same time, the global company is planning to realign its business in a plan for the upcoming fiscal year 2003, which the company said will result in a net increase of 8000 workers worldwide.

The local spokesman, however, would not comment on how the firm's Australian or regional offices will figure in that employee growth plan.

The firm said it sees a greater proportion of business coming from business transformation outsourcing (a combination of consulting and outsourcing engagements).

According to Accenture's Australian spokesman, outsourcing projects accounted for 17 per cent of revenues for the firm in the 2001 fiscal year -- a 20 per cent increase on the year before, he said.

He said the company expects this trend to continue, adding: "The skill sets of our workforce need to meet this trend."

The New York listed company also cut 1500 jobs last year.


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