Management in tech happened to be biggest overhead. This has been very true for consultancy firms where managers are non billable resources and there is empire building. Accenture announced 19000 job cuts and half of it is from non billable corporate functions (essentially managers). https://www.reuters.com/technology/accenture-forecasts-third-quarter-revenue-below-estimates-2023-03-23/ Same is the case with most tech companies like Meta/Salesforce/Microsoft etc where management mostly deals with people managers and lesser contribution towards business. Amazon/Google are better where management also owns business functions but still there is a lot of fat that needs trimming. I suspect in next 5 years, this overhead will be minimized. Beware ICs who wants to move to management and also existing managers who may need to act to keep themselves technical. Opening up for thoughts and discussion.
Corporate Functions is HR at Accenture, not "essentially managers" lol
This means nothing, this is over a very long period in time…
Nothing in my area but we are busy as hell in manufacturing
Corporate functions = HR, Admin, Finance Manager is a designation that exists in both consulting and corporate tracks. So yours is an inaccurate take.
My understanding working in consulting a while back is managers/sr managers/directors are non billable. Why would they not be part of non billable Corp resources? Yes other functions also would be, that I agree.
Managers / Sr Managers on consulting track are billable. Their billability target is lower than Analysts and Consultants. Corp functions include HR, Admin, Finance, Marketing, etc. Consulting track isn’t considered a part of Corp functions.
You are right, talked to a VP in Accenture just now. It seems mainly all levels of management are chargeable to some extent. But there are folks who are not chargeable. If they are not chargeable for long will be impacted.
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What’s the impact in # for india?
A very high % of Accenture headcount is in India and the guidance is 2.5% cut for the global workforce. Read "high" impact on India numbers
What is the time period of this layoff? I didn’t see any timelines