Accenture Faces Slowing New Bookings Amid Growing Global Uncertainty
Accenture reported a disappointing quarter with new project bookings dropping by 6% to roughly $19.7 billion for the three-month period ending May 31. Although the company’s earnings surpassed forecasts, its share price fell nearly 8% in early Wall Street trading, reflecting investor concerns over the firm’s future prospects.
CEO Julie Sweet noted that uncertainty remains at an unprecedented level compared to 2024, as global economic and geopolitical challenges continue to intensify. Clients across industries are now grappling with multiple issues simultaneously—from volatile markets to evolving customer demands—resulting in a cautious approach toward smaller-scale consulting engagements.
Shift Toward High-Value Digital Transformation Deals
While the appetite for smaller, discretionary consulting contracts has diminished, many organizations continue to prioritize large-scale digital transformation projects. “They’re not standing aside; they’re focusing on the initiatives that will truly drive change,” said Sweet. In response, Accenture is shifting its strategy to concentrate on fewer but more valuable technology and transformation deals, aiming to bolster its revenue in a challenging environment.
Impact of US Federal Contract Cuts
Another setback for the firm comes from its federal work in the United States. Roughly 8% of Accenture’s global revenue comes from government contracts, but recent cost-cutting measures under the previous administration have led to several contract cancellations and renegotiations. Since January, 28 contracts—including major umbrella deals nearing $1 billion in value—have been terminated, with federal spending on Accenture services falling to about $643 million for the May quarter, a significant decline from the previous year.
Consecutive Quarters of Weak Bookings
The trend of tepid new bookings has not gone unnoticed. Analysts have highlighted that slowed growth is likely to persist, prompting Accenture’s leadership to initiate a strategic reshuffle. The company reduced its global workforce slightly during the latest quarter, a move that follows earlier plans to cut approximately 19,000 jobs over an 18‐month period.
Leadership Changes and Organizational Restructuring
Major changes at the top are underway as Accenture consolidates its global business units. Three senior executives, including the heads of Consulting and Technology, have stepped down. All five business divisions are now being brought under the oversight of Manish Sharma, the current head of operations for the Americas. Accenture hopes that this centralized structure will enhance decision-making and reduce overheads in an increasingly cost-sensitive market.
Delays in Hiring and Onboarding New Graduates
The hiring slowdown is also affecting new talent. Several recent graduates have seen their start dates postponed in response to evolving client needs. One prospective recruit, who had initially accepted a consulting offer scheduled to start in June, ended up declining the opportunity after multiple delays pushed the onboarding date far into the future. A company spokesperson explained that the adjustments are aimed at ensuring smoother integrations for new hires, and in some cases, additional signing bonuses are being offered to ease the inconvenience.
Industry-Wide Caution and Future Implications
Comments on social media illustrate growing frustration among both current and prospective employees. Some former interns and candidates expressed disappointment in being left in limbo, with one remarking that they have “been strung along for months.” This sentiment reflects a broader industry correction that has also affected other consulting giants, as firms that expanded rapidly during the pandemic now reassess their growth and hiring strategies.
As Accenture navigates these challenges, the firm is focusing on cost reduction while maintaining investments in innovation and talent. However, with layoffs, leadership upheavals, and delayed onboarding continuing to impact the organization, the pressing question remains: How long will this period of caution endure, and will client spending pick up before the pipeline of new talent runs dry?
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