In the midst of a challenging macroeconomic environment, Accenture (NYSE:ACN) Plc. has decided to withhold stay-at-level salary raises for its workforce in India and Sri Lanka. Exceptions are being made only for legally mandated cases or critical skill areas, said Ajit Vij, country managing director at Accenture India on Thursday.
This decision comes in the wake of the company's Q4 earnings miss and a subsequent downward revision of its growth forecast for the fiscal year ending August 2024. Prior to this, Accenture had laid off 19,000 employees globally earlier this year.
Despite achieving a full fiscal revenue of $64.1 billion and a 4% YoY revenue increase to $16 billion for Q3 2023, Accenture fell short of the $16.07-billion consensus estimate. Additionally, the firm's operational profitability contracted by 150 basis points to reach 13.7%.
Looking forward, Accenture now projects a growth rate of 2-5% for the fiscal year ending August 2024. This cautious outlook reflects the company's response to the ongoing economic challenges and its recent financial performance.
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