Initiative Includes Sabbatical Program That Will Enable Company to Trim Short-Term Costs While Retaining Highly Skilled Workforce
NEW YORK, June 7, 2001 – Because of the economic slowdown and the company’s lowest personnel attrition rate in years, Accenture will reduce its staff in certain parts of the world, in certain skill groups and in some support positions.
The actions will affect approximately 1,400 people, up to 800 through a special voluntary sabbatical program for consulting personnel, primarily in the United States, and approximately 600 through the elimination of certain jobs as a result of a restructuring of support functions to improve operational efficiencies. Accenture currently employs more than 75,000 people globally.
The sabbatical program, known as "FlexLeave," will be open to consulting personnel at the senior-manager level and below with more than 12 months of service. The duration of the sabbaticals will range from six to 12 months. Consultants participating in FlexLeave will receive 20 percent of their salaries and continuation of their employer-provided benefits. Employees who take advantage of FlexLeave before Accenture’s expected initial public offering (IPO), will still participate in any equity awards that may be granted in connection with the IPO, in the same manner as similarly situated full-time employees not participating in the program.
"While we had hoped to avoid making any workforce reductions, even temporary ones, the current economic climate and our lower-than-usual attrition levels have created a modest imbalance between the demand for our services and our current staffing levels,” said Joe W. Forehand, Accenture managing partner and CEO. "The FlexLeave program will enable us to balance the skill sets and geographic mix of our workforce and trim costs in the short term, while retaining the highly skilled and talented people we have recruited and trained. In addition, the reductions in some support positions will enable us to maximize operational efficiencies.”
Mr. Forehand also said that because of Accenture’s continued growth overall and the increase in its European-based business, the company would have a net increase in total headcount for the year of at least 9,000 people.
Accenture is the world’s leading provider of management and technology consulting services and solutions, with more than 75,000 people in 46 countries delivering a wide range of specialized capabilities and solutions to clients across all industries. Accenture operates globally with one common brand and business model designed to enable the company to serve its clients on a consistent basis around the world. Under its strategy, Accenture is building a network of businesses to meet the full range of any organization’s needs — consulting, technology, outsourcing, alliances and venture capital. The company generated revenues of $9.75 billion for the fiscal year ended August 31, 2000 and $5.71 billion for the six months ended February 28, 2001. Its home page is http://www.accenture.com.
A registration statement relating to the offering has been filed with the Securities and Exchange Commission but has not yet become effective. The shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This announcement appears as a matter of record only and should not be taken as an inducement or solicitation to subscribe for shares in any subsequent initial public offering.