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Accenture plc (ACN) is initiating a workforce overhaul as it sharpens its focus on artificial intelligence, with plans to phase out employees who are unable to adapt to the company’s evolving AI-first strategy.
During the fourth-quarter (Q4) earnings call on Thursday, CEO Julie Sweet emphasized that AI will soon become integral to all aspects of the company's operations, and those unable to transition into AI-focused roles will be let go under an accelerated timeline.
“We are reinventing what we sell, how we deliver, how we partner, and how we operate Accenture,” said Sweet. “We are exiting, on a compressed timeline, people where re-skilling based on our experience is not a viable path for the skills we need.”
Accenture stock inched 0.2% higher in Friday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
The stock experienced a 122% surge in user message count over 24 hours, as of Friday morning. A bullish Stocktwits user said the AI-related business should ‘drive up some enthusiasm’.
Another user lauded the earnings.
During the fourth quarter (Q4), the company initiated a six-month restructuring plan to enhance operations and recorded a charge of $615 million. It also expects to add about $250 million in costs in the first quarter (Q1) of fiscal year 2026, bringing the total to around $865 million over the six months.
These expenses primarily cover severance payments and the write-down of certain assets associated with Accenture’s workforce strategy. CFO Angie Park stated that the restructuring is projected to yield over $1 billion in savings. These funds, she added, will be redirected toward growth initiatives and further upskilling programs.
Guggenheim has reduced its price target on Accenture to $285, down from $305, but maintained a ‘Buy’ rating, according to TheFly. The firm noted that the recent restructuring provides bearish investors with more reason to question the reliability of Accenture’s profit strategy, especially given the ongoing margin issues and the fact that this is the second restructuring in three years.
Accenture's stock has lost over 33% in 2025.
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