Chicago: Global management consulting and outsourcing company Accenture is reducing its senior executive workforce by 7% besides, pruning real estate capacity as part of restructuring efforts.
Restructuring is expected to cost the company $247 million in the fourth quarter of fiscal 2009 ending 31 August.
Of the costs, about $119 million would be related to reduction of excess office space globally and the remaining for severance and related costs of workforce reduction.
The 7% workforce reduction would mean over 300 senior-executives would be laid-off.
“As part of our drive to deliver high performance... we are acting boldly to position Accenture better for both short-term and long-term economic improvement growth and profitability,” Accenture chairman and CEO William Green said in a statement on Friday.
The New-York based company expects space reductions to be completed by end of the current fiscal and the workforce actions to be completed during the first quarter of fiscal year 2010.
Prior to the cut, the company had 4,800 senior-executive employees and a total of 177,000 employees globally.
Green said the company is taking steps to ensure that it has the right cost structure to support the business going forward.
Reduction of excess office space globally would increase the productivity of the company’s fixed cost-base and generate ongoing savings, while the workforce reduction has been designed to ensure that the company’s global workforce is properly aligned to “best serve the evolving needs of its clients and its business”.
“The realignment of our senior-executive workforce will help ensure that Accenture has the right people, skills and capabilities, at the right levels and in the right places,” the statement said.
Accenture expects net revenues for the fourth quarter of fiscal 2009 to be in the range of $5 billion-$5.2 billion, it added.