Why has Accenture asked staff to delay unused vacation? CEO Julie Sweet says ‘we all need to find more ways to serve’
Accenture has reportedly asked its employees to carry over unused vacation days into the next financial year, according to a Bloomberg report. Accenture's memo to
Accenture has reportedly asked its employees to carry over unused vacation days into the next financial year, according to a Bloomberg report. Accenture's memo to it's staff comes as a break from its usual policy as the consulting giant seeks to drive more business before its fiscal year ends in August, as reported by Bloomberg. The one-time change means Accenture staff can roll over any unused holiday entitlement when the company’s new financial year begins on September 1. The move comes as Chief Executive Julie Sweet urged employees to help generate more business before the current fiscal year closes. CEO Julie Sweet urges Accenture staff to bring in more business Julie Sweet has called on employees to increase sales and expand client work before the end of the quarter, following a weaker-than-expected third-quarter performance that sent Accenture shares sharply lower.
Also Read | Accenture reworks salary hikes to include more staff — What changes “Our shareholders are counting on us to deliver a strong quarter in Q4 — everyone can contribute,” Sweet wrote in a memo to staff seen by Bloomberg. “This means we all need to find more ways to serve clients that create more revenue in the quarter and to originate more sales (small, large, mega) to finish strong.” The temporary holiday policy is part of the broader sales push, according to Bloomberg report citing people familiar with the matter. Allowing employees to carry forward their accrued leave could encourage more staff to remain at work during the final quarter rather than taking time off before unused days expire.
Accenture faces pressure after weak bookings The sales drive follows a challenging third quarter for Accenture. New bookings fell 2% in the quarter ended May 31, while the company forecast revenue of $17.75 billion to $18.4 billion for the three months through August. That outlook was below the $18.47 billion average estimate among analysts tracked by Bloomberg. Also Read | Accenture shares plunge 19% as weak revenue forecast sparks selloff Investors reacted sharply to the results. Accenture shares fell 18% to $127.98 on June 18, marking one of the company's steepest one-day declines. AI remains a concern for consulting industry Julie Sweet has described AI as a “tailwind” for Accenture, arguing that the technology could create new opportunities for the company.
Investors, however, remain focused on whether AI could reduce demand for some traditional consulting and services work. Also Read | Accenture asks India staff to book a seat or face action “AI remains the dominant concern for services and consulting,” Bloomberg Intelligence wrote in a research note last month. “Though management positions Accenture as a long-term AI beneficiary, tangible evidence that AI is accelerating demand is limited.”
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