Artificial Intelligence – AI | In a move that has sent shockwaves through the global tech industry, Accenture, one of the world’s leading consulting firms, announced on September 28, 2025, the layoff of 11,000 employees over the past three months. The company, which reported a robust 7% revenue increase to $69.7 billion in fiscal year 2025, attributed this seismic workforce reduction to its aggressive pivot toward artificial intelligence. As part of an $865 million restructuring initiative, Accenture is not only cutting jobs but also warning of further reductions for employees unable to reskilling for AI-driven roles. This development raises critical questions about the future of tech employment, the role of AI in job displacement, and the socioeconomic implications for workers worldwide including in emerging markets like Sri Lanka.
The AI Narrative: A Convenient Scapegoat?
Accenture’s announcement, highlighted by an Investing.com post on X, frames AI as the primary catalyst for these layoffs. CEO Julie Sweet has emphasized the company’s investment in upskilling 550,000 workers in generative AI and plans to hire 12,000 AI-focused roles, particularly in India. The firm’s $5.9 billion in AI bookings and a near-doubling of AI specialists to 77,000 underscore its commitment to this technological frontier. However, skepticism abounds. A 2023 MIT study suggests that AI automation currently replaces less than 5% of routine tasks, indicating that economic pressures, cost-cutting, or strategic realignment might be the true drivers behind these layoffs rather than AI alone.
This sentiment is echoed across social media, with users like @ecommurz and @tetheryoda on X questioning whether AI is being used as a convenient excuse. The global consulting giant’s decision to redirect savings from its $865 million restructuring—part of which includes severance costs—into training and operational efficiency further fuels the debate. Are these layoffs a genuine response to AI’s transformative potential, or are they a corporate strategy to optimize profit margins amid sluggish corporate demand?
The Reskilling Challenge: A Viable Path for All?
At the heart of Accenture’s strategy is a mandate for employees to “retrain and retool” for an AI-centric future. Sweet has outlined a “compression timeline” to exit workers for whom reskilling is not feasible, a policy that has already impacted 11,000 jobs and could affect more of the company’s 790,000-strong global workforce. While Accenture has successfully upskilled 550,000 employees in generative AI fundamentals, a 2024 McKinsey report reveals a stark reality: only 25% of workers globally can effectively upskill within a year. This gap poses a significant challenge, particularly for mid-career professionals or those in regions with limited access to advanced training programs.For Sri Lanka, a nation with a burgeoning IT sector and a growing pool of tech talent, this trend is both a warning and an opportunity. The country’s IT exports, valued at over $1.5 billion in 2024, rely heavily on skilled labor in software development, IT services, and business process outsourcing. However, if global firms like Accenture prioritize AI-ready talent, local workers may face pressure to upskill rapidly or risk being sidelined. The lack of scalable reskilling initiatives in Sri Lanka, coupled with economic constraints, could exacerbate unemployment in the tech sector if AI adoption accelerates without parallel workforce development.
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The H-1B Factor and Global Workforce Shifts
Adding another layer of complexity is the recent U.S. policy shift on H-1B visas, which allows companies to hire foreign skilled workers. In September 2025, the Trump administration introduced a $100,000 fee per H-1B application, a move aimed at curbing perceived abuses of the program. Accenture, which secured approval for 1,568 H-1B visas in the first half of 2025, relies on this program for about 5% of its U.S. workforce. The increased costs could deter further U.S.-based hiring, prompting the company to expand its operations in cost-effective regions like India, where it plans a 12,000-job AI campus in Andhra Pradesh.
This shift has sparked controversy on X, with users like @T.C. McCarthy noting Accenture’s 9,915 labor condition applications for H-1B visas in 2025, suggesting a pattern of replacing U.S. workers with lower-cost foreign labor under the guise of AI-driven efficiency. For Sri Lanka, this global reallocation of tech jobs could open doors if the country positions itself as an attractive alternative to India, leveraging its English-speaking workforce and competitive labor costs. However, it also underscores the need for proactive government policies to attract foreign investment and support local tech training.
Socioeconomic Implications: A Global Perspective
The Accenture layoffs are part of a broader trend, with thousands of jobs cut across the tech and consulting sectors in 2025 alone. X posts from @DividendDude_X and @mainbhiengineer highlight the anxiety gripping IT professionals, with some predicting a “winter” for traditional tech roles. In India, where Accenture’s expansion is concentrated, users like @IndiaNewGen have called for tax relief to support laid-off workers, reflecting the economic strain on individuals and families. Similarly, in Sri Lanka, where the IT sector employs over 150,000 people, any ripple effects from global layoffs could strain an economy still recovering from the 2022 financial crisis.On the flip side, AI’s potential to drive productivity and create new roles cannot be ignored. Accenture’s revenue growth and AI bookings suggest that the technology is generating demand for specialized skills, such as data science and machine learning. The challenge lies in ensuring that these opportunities are accessible to a broader workforce. Initiatives like the UK’s £31bn “Tech Prosperity Deal” with U.S. tech giants, announced in September 2025, aim to create high-skilled jobs, but experts warn of an AI bubble that could burst, as noted by @unclebobmartin on X.
Lessons for Sri Lanka and the Global South
For Sri Lanka, the Accenture case study offers valuable lessons. First, the importance of investing in AI education and reskilling programs cannot be overstated. Partnerships between the government, private sector, and international organizations could help bridge the skills gap, ensuring that local talent remains competitive. Second, diversifying the tech ecosystem beyond traditional IT services to include AI innovation could position Sri Lanka as a hub for emerging technologies. Finally, policymakers must monitor global trends, such as H-1B policy changes, to capitalize on opportunities for job creation.
The Accenture layoffs are not an isolated incident but a harbinger of the transformative—and disruptive—impact of AI on the tech industry. While the company’s pivot to AI has bolstered its financials, the human cost is undeniable. As the world grapples with this shift, nations like Sri Lanka must act decisively to protect their workforce while embracing the opportunities that AI presents. The future of tech jobs hangs in the balance, and the choices made today will shape the global economy for decades to come.
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