In a jaw-dropping move that’s shaking the consulting world, Accenture has slashed over 11,000 jobs in just three months, and the wave of layoffs could be far from over. As the Dublin-based consultancy grapples with the reality that artificial intelligence is increasingly taking the reins, they are preparing for an era where human consultants are becoming a thing of the past.

Recently, Accenture revealed a staggering $865 million restructuring plan, sending shockwaves through its workforce and warning analysts that more job cuts could happen if employees don’t adapt quickly enough to new technologies. Chief Executive Julie Sweet candidly expressed the urgency of the situation during a call with investors, stating, “We are moving on a compressed timeline.” She added, “Where reskilling simply isn’t a viable path, we are making the difficult choice to exit people.” It’s a cold reminder that, in this high-stakes game, not everyone will survive.

As of the end of August, Accenture’s global headcount has dwindled to 779,000, down from 791,000 just a few months earlier. The financial reasoning behind these layoffs is evident; severance and related expenses accounted for a whopping $615 million in the last quarter alone, with another $250 million anticipated for the current quarter. Accenture’s leadership is betting that this restructuring will eventually save them over $1 billion.

What’s truly fascinating is that while the company is trimming its human resources, it’s also heavily investing in artificial intelligence. Last year alone, generative AI projects brought in $5.1 billion in new bookings—up from $3 billion the prior year. The growth is compelling, prompting Accenture to reshape its workforce dramatically. Sweet emphasized the importance of having a robust group of AI and data professionals, now numbering 77,000—almost double the 40,000 they had just two years ago. These ‘reinventors’ are seen as essential to the company's future, as the strategy hinges on upskilling existing employees. However, when upskilling fails, layoffs are the fallback plan.

This aggressive pivot towards AI mirrors a significant trend across the consulting and IT services sectors. The traditional model of large teams of consultants deploying at client sites is under pressure as companies tighten their budgets and federal contracts dwindle. The lure of AI-driven efficiencies is simply too strong for Accenture and its competitors to ignore.

For employees, the message is clear: adapt to the digital shift or risk redundancy. But for clients, Accenture is presenting itself as the ideal partner for those anxious about navigating their own technological futures. However, this transformation raises important questions about the sustainability of human expertise in a world rapidly favoring automation. Accenture is banking on a leaner workforce with sharper skills to maintain its extensive client base. Only time will reveal if this gamble pays off.

This restructuring highlights the staggering pace at which the consulting landscape is evolving. Not long ago, this industry was believed to be shielded from the impacts of automation, but today, it’s at the forefront of a battle between human skills and the relentless march of AI. Industry leaders, including figures like Sam Altman, have predicted that AI will replace countless jobs across various sectors, and Accenture’s recent moves may well be a harbinger of what’s to come.