Accenture to cut 7% of senior executives

NEW YORK: Technology outsourcing and consulting firm Accenture Ltd said on Thursday it cut 7 percent of its senior executives and would take charges that will lower its fiscal fourth-quarter profit.

The New York-based company also said it is also taking steps to reduce office space as it seeks to drive growth.

Accenture said the cost-cutting actions would result in a pre-tax restructuring charge of around $247 million in the fiscal fourth quarter ending Aug 31.

Accenture said it continued to expect net revenues for the fourth quarter in the range of $5 billion to $5.2 billion with operating margins between 13.4 percent to 13.7 percent.

The company said it expects the restructuring charges to reduce its earnings per share for both the fourth quarter and the full year by 24 cents.

Wall Street analysts had on average been expecting Accenture to post profits of 63 cents in the fourth quarter and $2.68 for the full year, according to a poll by Reuters Estimates.