Thread regarding Accenture layoffs

Future (let's say 5 years from now)

my prediction and I am a 2nd year senior manager with iffy prediction track record.

five years from now, ACN is likely a smaller, leaner, more AI-centered firm with less revenue tied to labor-heavy delivery... more tied to high-end consulting, governance work, and complex project/enterprise orchestration... and still facing lower headcount leverage and margin pressure than in its pre-AI model.

I see Accenture at roughly 70% of current revenue (lets say in 5 years), with headcount down much more than revenue because AI compresses labor faster than it ki-ls total demand...

Now let's look Bear vs Bull cases, i am in the middle:

Bears: Think in terms of an impact across the board bears will say this:

  • Mgmt Consulting - High Value Add (Research, planning, transformation - advanced thinking LLM models are really good at this - it'll slash demand by 50%)
  • Vendor Selection (each advanced LLM model beats Gartner, things are analyzed and customized in less than 8 hours of work - u still need consulting, but you need 2 guys instead of 12)
  • Design Systems Work (see above, the same applies)
  • Dev (Agentic is going to cannibalize this up to 80%)
  • Testing (Same as above, Agentic works - writes and executes scripts, u just need oversight and metrics, this will take a 70% haircut).
  • Training and Change/Communication (Same as above)
  • PMO (Still needed, probably 25% less or so)
  • Management (Still needed, probably minimal impact)
  • Overhead (Contracts, finance, HR, Still needed but will get streamlined extra 20% over time).

Bulls will counter with this, and the Wall Street seems to be more on the Bears side at least for now:

  • Mgmt Consulting - High Vlue Add (AI strategy, operating model, transformation - LLMs generate options, but exec alignment grows - demand shifts up the stack)
  • Vendor Selection (LLMs speed anlysis, but audit and risk increase - still need validation and accountability, fewer analysts more senior roles)
  • Design Systems Work (AI builds components, but enterprise standardization at scale grows - governance and consistency expand)
  • Dev (Agentic boosts output, but backlog expands - fewer devs per project, more projects overall)
  • Testing (Agentic automates scripts, but continuous validation and monitoring grow - shift to quality engineering)
  • Training and Change/Communication (More tools, faster change - structured adoption and change mgmt expand)
  • PMO (Faster delivery, more coordination across AI, data, business - leaner but more critical)
  • Mgmt (Fewer layers, higher span of control - more intense decision making)
  • Overhead (More AI licensing, compliance, governance - leaner ops, higher complex.)

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| 1 view | | 3 replies (last April 30) | Reply
Post ID: @OP+1kmrcza6r

3 replies (most recent on top)

We are building agents. You may lose your job but we'll charge clients for all the work that agents will be doing. No payroll. u pay for tokens and that's it. Good for MDs

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Post ID: @4zh+1kmrcza6r

Within the consulting industry, firms will likely turn to mergers as a strategy for survival.

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Post ID: @a9+1kmrcza6r

A more realistic version, somewhat aligned with the @OP thesis, would be:

A) Revenue down 40% to 50%
B) Headcount down 50% to 65%
C) Traditional delivery revenue down 60% to 80%

High end consulting / governance / AI transformation up 20% to 40%, but too small to offset the delivery hit

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Post ID: @a1+1kmrcza6r

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