Why Accenture wants its staff to delay vacations
What's the story
Accenture has announced a temporary policy change, allowing employees to carry over their unused vacation days into the next fiscal year. The move comes as part of the company's strategy to boost business before the end of August. The new policy is a break from Accenture's usual practice and is intended to encourage more staff participation in business activities during this period.
Leadership call
CEO urges staff to bring in more business
Accenture's CEO Julie Sweet has urged employees to bring in more business before the end of the company's 2026 fiscal year.
This comes after a disappointing third-quarter earnings report that saw shares plummet by 20%.
"Our shareholders are counting on us to deliver a strong quarter in Q4, everyone can contribute," Sweet said in a memo to staff.
Financial performance
Policy change follows decline in new bookings and revenue projections
The policy change comes as Accenture reported a 2% decline in new bookings for the quarter ending May 31.
The company also projected revenue between $17.75 billion and $18.4 billion for the three months ending August, missing the average analyst estimate of $18.47 billion compiled by Bloomberg.
Following these results, investors reacted negatively with Accenture shares closing down 18% to $127.98 on June 18, one of their worst one-day falls on record.
Market response
AI described as 'tailwind' for Accenture's business
Despite the disappointing earnings report, Sweet has described AI as a "tailwind" for Accenture's business.
However, investor concerns about potential disruption from artificial intelligence in the near term remain high.
Bloomberg Intelligence recently noted that "AI remains the dominant concern for services and consulting."
Although Accenture shares have recovered since its third-quarter earnings to $171.11 on August 7, they are still down over 36% year-to-date.