Coronavirus: Accenture cuts up to 900 UK jobs due to 'additional strain'

Accenture is to cut up to 900 UK jobs, blaming "additional strain" on the business caused by the coronavirus crisis.

The US-owned consultancy firm, which has offices in London, Manchester, Newcastle and Edinburgh, is the latest business to take an axe to its workforce because of the pandemic.

Thousands of cuts have been announced in recent days by companies ranging from Upper Crust owner SSP to aeroplane maker Airbus.

The job losses at Accenture will see between 700 and 900 go.

In a note to staff, first reported by the Guardian, the company said: "We went into the crisis with an overcapacity of people relative to demand.

"The crisis has caused additional strain on the business due to lower demand and reduced natural attrition.

"In addition, we have identified structural costs that we need to address."

Costs have already been reduced by cutting travel and contractor budgets and freezing recruitment, the note said, adding that "unfortunately these numbers have not been enough".

In a statement, Accenture said: "We remain confident in our business in the UK for the long term.

"We are taking steps now to be able to continue investing in our workforce and our business, ensuring we have the right people with the right skills to best serve our clients and are well positioned for the future.

"We have notified our UK people that it is necessary to go into collective employee consultation for a proposed redundancy programme."

Other professional services firms have also been grappling with the impact of the pandemic on their businesses.

Sky News revealed in May that big four accountancy firm EY was delaying partner promotions by three months - though it has committed to retaining its UK workforce.

Meanwhile, partners at KPMG were told in April that they could see their pay packages cut by around 25% as a result of the pandemic.