ACN Stock Price Surges as Accenture Announces 19,000 Jobs Cuts

Accenture slashed 19,000 jobs globally, and in response, ACN stock price surged by 7.22% intraday. The Irish-American professional services company disclosed it has set aside a provision of $1.2 billions in severance to cut about 2.5% of its human resource spanning over the next 18 months. It also spent another $300 million to consolidate its office space. The company confirmed that more than half of the slashed roles would be from the back-office staff, according to CNN.

Accenture Sliced and Surged

Accenture lowered its annual revenue and profit projections as it decided to ax 2.5% of its workforce as it attempts to cut costs amid a gloomy economic outlook. The $167 billion company downgraded its revenue for the fiscal year 2023 to 8-10 percent. The previous estimate range was 8-11 percent.

Accenture, in its latest quarterly report to Securities and Exchange Commission, said it could continue to hire, but had commenced actions to consolidate operations. It will also transform its non-billable corporate functions to reduce costs. It recently reported its fiscal Q2 adjusted earnings of $2.69 per diluted share, where analysts expected adjusted EPS of $2.50.

The company also retained its quarterly dividend at $1.12 per share, payable May 15 to shareholders of record on April 13. Revenue for the second quarter was $15.81 billion, while the expected figure was $15.59 billion. For the Q3, revenue of $16.1 billion to $16.7 billion is expected. The projected adjusted earnings are to be $11.41 to $11.63 per share.

ACN Stock Price Analysis

ACN stock price rallied by 7.22% in a single trading session, stretching the bullish movement. The trading volume reflects bulk buying by investors. The breakout in ACN stock price jumped to the fourth level of Fib retracements, and can soon reclaim the target of $295.90. The current price of $271.66 (at the time of writing) may face resistance near $274.70, but if breached, can amplify the bullish momentum.

The RSI ripped through the half line, reaching the buyer-dominant zone mirroring the buying spree in ACN stock price action. The MACD forms a bullish divergence and records tall buyer bars, suggesting bulls gaining dominanṣce. The bullish indicators suggest the momentum may last long and be beneficial in the long term.

Conclusion

ACN stock price soared high after the company laid down its plans for the fiscal year 2023. Accenture announced plans to cut 19,000 jobs in over 18 months. Its revenue report for Q2 revealed positive performance. Plans to cut costs may have stemmed from the need to beat inflation and economic uncertainty. It might influence the holders of ACN stock positively.

Technical levels

Support levels: $257.05 and $244.95

Resistance levels: $274.70 and $288.15

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing