AI Push Triggers Massive Layoffs in Accenture’s $865M Restructuring

TLDRs;

• Accenture laid off 11,000 employees in three months as part of its $865M AI-driven restructuring plan.
• CEO Julie Sweet emphasized reskilling but admitted not all employees can be retrained fast enough for AI roles.
• TCS and major tech firms like Microsoft, Meta, and Amazon also cut jobs as AI reshapes global employment.
• Nearly 90,000 tech employees have been laid off globally in 2025, reflecting AI’s rapid impact on the workforce.

The accelerating adoption of artificial intelligence (AI) is transforming how global corporations operate and who they employ.

Accenture, one of the world’s largest consulting and IT services firms, has announced significant layoffs as part of an $865 million restructuring initiative.

Over the past three months alone, the company has eliminated 11,000 jobs, signaling that its long-term shift toward AI-powered operations is reshaping the workforce more dramatically than many expected.

11,000 Roles Lost in Three Months

Accenture confirmed that its global headcount fell from 791,000 earlier this year to about 779,000 by the end of August 2025. The company said severance costs and related expenses had already reached hundreds of millions of dollars, with more cuts potentially on the horizon.

While the firm insists that reskilling remains its preferred approach, CEO Julie Sweet emphasized that not all employees can be retrained quickly enough to align with the rapid adoption of AI across its client services.

The restructuring, valued at $865 million, is designed to streamline operations and prioritize investments in AI, cloud, and data-driven solutions. Accenture has been among the earliest major consultancies to embed generative AI into enterprise offerings, but that technological leap has come at the cost of thousands of human jobs.

Reskilling Programs Face Steep Challenges

Executives at Accenture have repeatedly underscored their commitment to retraining displaced staff, but the sheer speed of technological change is proving difficult to match.

While thousands of employees are being offered retraining in AI, cloud computing, and data analytics, the pace of automation means not everyone will find a place in the company’s new structure.

Industry analysts warn that this mismatch between the speed of AI adoption and the slower process of human reskilling is likely to become a recurring theme across the global tech sector. In effect, the AI revolution is arriving faster than workforces can adapt.

TCS and Global Tech Firms Cut Staff

Accenture is far from alone. Tata Consultancy Services (TCS), India’s largest IT firm, has also reduced its headcount in 2025, with estimates suggesting as many as 30,000 jobs have been eliminated.

Though the company has downplayed AI as a direct factor, its creation of a dedicated AI and Services Transformation unit underscores how deeply AI integration is tied to workforce adjustments.

Other global giants like Microsoft, Meta, Google, Amazon, Intel, and Panasonic have also made significant layoffs this year. Microsoft cut thousands in non-core divisions while integrating AI across its products. Meta shed 3,600 employees as part of its “year of efficiency.”

Amazon trimmed its Alexa team as voice assistants give way to generative AI tools, while Intel shifted staff away from legacy chip divisions to focus on AI semiconductors.T

 

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