Accenture beat Wall Street revenue estimates in its fourth quarter and announced a six-month, $865 million restructuring plan to reposition its operations for the growing demand in digital and artificial intelligence services. The Dublin-based consulting giant said the initiative would involve severance costs and selected divestitures, but savings would be reinvested into staff training, technology adoption, and operational efficiency. The move underscores how global firms are reshaping their business models to adapt to AI-driven transformation.

The company expects to record $250 million in charges in the current November quarter, adding to the $615 million already booked in the fourth quarter, bringing total restructuring charges to $865 million. Executives emphasized that despite the overhaul, Accenture remains committed to hiring and will roll out a new talent strategy focused on upskilling workers, phasing out roles with outdated skills, and embedding AI tools to boost productivity across its global workforce.

The restructuring reflects broader industry trends, as consulting and IT service firms adapt to shifting client priorities and heightened competition. Accenture’s leadership has stressed that demand for AI solutions is accelerating rapidly, with clients increasingly seeking partners who can deliver both technology and organizational transformation at scale. Analysts note that the restructuring is likely aimed at freeing up resources to capture these opportunities.

However, the company faces added challenges from U.S. immigration policies that could affect its access to skilled labor. Earlier this month, President Donald Trump introduced a one-time $100,000 fee for H-1B visas, a move that raised concerns across the tech and consulting industries. Accenture, which secured approvals for 1,568 H-1B beneficiaries in the first half of the year, ranks among the top 25 employers relying on the visa program. Higher labor costs could complicate its workforce strategy in the U.S. market.

Despite these hurdles, Accenture remains optimistic about its growth prospects. Executives highlighted ongoing investment in digital, cloud, and AI services as central to the firm’s long-term strategy. By reshaping its cost base while reinvesting in emerging technologies and talent, the company aims to solidify its position as a leading player in the fast-evolving AI consulting landscape.

Source: Reuters.