Accenture has announced plans to lay off employees who cannot reskill on artificial intelligence, positioning AI as central to its restructuring and growth strategy.

“We are investing in upskilling our reinventors, which is our primary strategy,” said CEO Julie Sweet on Thursday. “We are exiting on a compression timeline people for whom reskilling isn’t a viable path.”

Sweet emphasized that advanced AI will become “a part of everything we do,” with reskilling and retraining positioned as mandatory for staff to remain part of the workforce.

As part of the shift, Accenture outlined a six-month $865 million business optimization program, which includes costs for severance packages and headcount reductions.

Chief Financial Officer Angie Park said the initiative is expected to generate over $1 billion in savings. She noted those funds will be reinvested into the company’s business and people:

“We expect savings of over $1 billion from our business optimization program, which we expect that we will reinvest in our business and in our people because it’s so important for our future growth and so we expect to reinvest that while still delivering modest margin expansion,” Park said.

While exiting some workers, Accenture is also aggressively expanding its AI workforce. The company reported employing 77,000 AI and data professionals in 2025, up from 40,000 in 2023, with plans to continue hiring across the U.S., Europe, and other markets in FY2026.

“Our No. 1 strategy is upskilling, given the skills we need,” said Sweet. “We’re trying to, in a very compressed timeline, where we don’t have a viable path for skilling, sort of exiting people so we can get more of the skills in we need.”

For FY2025, Accenture reported revenue of $69.7 billion, up 7% year over year. In an interview with CNBC’s Squawk on the Street, Sweet credited “massive client demand” for AI deployment as the primary growth driver.

“Our early investment in AI is really paying off,” Sweet said. “Every CEO, board and the C-suite recognize that advanced AI is critical to the future. The challenge right now they’re facing is that they’re really excited about the technology and they’re not yet AI ready for most companies.”

Q: Why is Accenture laying off employees?
A: Accenture is “exiting” staff who cannot reskill on artificial intelligence, as part of a strategy to prioritize AI talent.

Q: How many employees has Accenture already reskilled?
A: The company says 550,000 employees have been trained on generative AI fundamentals.

Q: How much is Accenture spending on restructuring?
A: The company has allocated $865 million for severance and optimization.

Q: Will Accenture continue to hire despite cuts?
A: Yes. Accenture expanded to 77,000 AI/data professionals in 2025 and plans further hiring in the U.S. and Europe.

Q: How much revenue did Accenture generate in FY2025?
A: Accenture reported $69.7 billion, a 7% year-over-year increase, driven largely by AI adoption.

The restructuring signals a major shift: artificial intelligence skills are no longer optional in global professional services firms. By requiring staff to retrain or exit, Accenture is setting a precedent for how large organizations may manage workforce transitions in the AI era.

If successful, the company could become a model for how reskilling at scale drives both revenue growth and workforce transformation. However, the strategy carries risks, including employee pushback, morale challenges, and the potential loss of institutional knowledge.

For workers and businesses alike, the message is clear: adapting to AI is no longer optional — it is the defining requirement for staying competitive in the future economy.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.