Accenture Accentuates the Negative: Cutting Pay, Bonuses

August 6, 2002 (PLANSPONSOR.com) - Consulting giant Accenture Ltd. has cancelled raises for most workers - and plans to cut partner salaries by as much as 8%, according to published reports.

The Chicago-run company has canceled raises for the bulk of its employees, keeping their base pay flat for all of next fiscal year, which begins September 1.  The only exception is newly promoted employees, where some will get slight raises while others will receive bonuses in lieu of raises, according to Crain’s Chicago Business, citing a company spokeswoman.

Reacting to the business slump, Accenture partners will also have their salaries cut, and the company is also eliminating performance-based stock options next fiscal year.  Still other pay cuts will be aimed at partners whose salaries are above the industry average, according to the report.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Last month Accenture said it would slash about 1,000 jobs, roughly 1% of its workforce of 75,000 worldwide.  The company will be cutting consulting positions over the next few months, mainly in management.

The reductions will be primarily in the United States, the United Kingdom, and Australia, according to the spokeswoman.

Job Cut Announcements Cut in July

August 5, 2002 (PLANSPONSOR.com) - Job cut announcements fell to the lowest level in 14 months, according to a new report.

Outplacement firm Challenger, Gray & Christmas said there were 80,966 planned job-cut announcements during the month – 15% less than the previous month (See Telecoms Tremors Drive up June Layoffs ) and 61% fewer than a year ago.

July was the third consecutive month that job cuts fell below the 100,000 mark.  Prior to May 2002, monthly job cuts were over 100,000 in 16 out of 17 months. May 2001 was the only exception.

Get more!  Sign up for PLANSPONSOR newsletters.

The 2002 seven-month job-cut total is 816,493, 17% lower than the 983,337 last year.
For the fourth consecutive month and the tenth time in 13 months, telecommunications was the top job-cutting industry with 20,196 planned job-cut announcements.  Telecom job cuts in July were 34% lower than the 30,455 announced in June.

Telecommunications is one of the few sectors in which job cuts continue to rise.  It has announced 186,036 job cuts in 2002, 6% more than the 175,350 job cuts announced through July 2001.  Telecommunications now accounts for nearly a quarter of all 2002 announced cuts.

«