Accenture has announced restructuring plans that involve both layoffs and real estate sales. The actions will result in a pretax restructuring charge of roughly $247 million in the fourth quarter of fiscal 2009, ending Aug. 31.
Accenture said it will reduce senior executive ranks by approximately 7 percent. That equates to roughly 336 positions, according to Global Services.
Of the $247 million restructuring charge, about $119 million relates primarily to the reduction of excess office space globally. The rest of the charge is for severance and related costs of workforce actions, primarily at the senior-executive level, according to the company.
"In addition to continuing to manage Accenture with great discipline in a challenging environment, we're taking proactive steps to ensure that we have the right cost structure to support our business going forward and that our organization is properly aligned to most effectively capture future growth opportunities," said William D. Green, Accenture's chairman and CEO, in a statement. "At the same time, we're making strategic investments in high-value growth areas that will enable us to extend our leadership in the market."
Accenture said it will work with the affected executives to help them find new opportunities outside of the company. The solution provider expects the space reductions to be completed by the end of the current fiscal year and the workforce actions to be largely completed during the first quarter of fiscal year 2010.