Employees at tech firm Accenture have not received promotions. The company has delayed promotions by about six months. According to Bloomberg, last week, the tech firm informed employees through a blog that most promotions will take place in June instead of December.
Sources say the company informed managing directors of the schedule change earlier this month. An Accenture representative said the company is “permanently shifting its primary promotion date from December to June. The company argues that at this time we have a better understanding of our clients’ plans and demand.”
Reasons for delay
Accenture employs about 750,000 people in 120 countries, Bloomberg reports. The company’s decision highlights growing uncertainty in the professional-services sector as clients are reducing spending. Accenture shares suffered their biggest drop in four years last March. The company revised its fiscal 2024 revenue outlook down to 3%, down from a previous estimate of 5%.
Like many of its competitors, Accenture aggressively grew its workforce during the pandemic to meet rising demand. More than a year ago, the company announced plans to cut 19,000 jobs over an 18-month period — roughly 2.5% of its workforce at the time.
Other consulting firms, including McKinsey & Co, Ernst & Young and PricewaterhouseCoopers, have also reduced headcount amid the slowdown. However, a recent surge in demand for automation and AI-related projects has provided some relief.
Accenture did not hike salaries in India and Sri Lanka
Last October, Accenture announced it would not give pay increases to its employees in India and Sri Lanka in 2023, except where legally required or where commitments have been made in critical skills areas. The company employs more than 300,000 people in India.
