Accenture asks staff to delay vacations amid sales push
What's the story
Accenture has asked its employees to postpone their vacations and carry over unused leaves into the next financial year, a Bloomberg report said. The unusual policy change comes as part of the company's effort to drive more business before the end of its fiscal year in August. The move is aimed at keeping more employees working through August, instead of taking time off.
Leadership directive
Julie Sweet urges employees to step up in final weeks
Accenture's Chief Executive Julie Sweet has urged employees to step up their game in the last weeks of the fiscal year.
In an internal memo, she said, "Our shareholders are counting on us to deliver a strong quarter in Q4, everyone can contribute."
She also asked them to find new ways to serve clients and originate sales, whether small or "mega," to help the company finish strong.
Strategic move
Vacation rollover policy part of larger sales push
The vacation rollover policy is part of a larger sales push by Accenture.
By allowing employees to carry over their unused leaves, the company hopes to keep them from taking time off before the fiscal year ends.
This way, more employees will be available for work in the final quarter, instead of using up their accrued time off.
Market response
Decline in new bookings for Accenture
Accenture's performance in the last quarter was not up to the mark, with new bookings declining by 2%.
The company projected revenue of $17.75 billion-$18.4 billion for the three months ending August, missing analysts' average estimate of $18.47 billion.
This led to an 18% drop in Accenture shares on June 18, one of its biggest single-day declines ever.
Tech concerns
Concerns over AI's impact on Accenture's business model
Despite Sweet calling AI a "tailwind" for Accenture, investors are worried about its potential to disrupt the company's consulting-heavy business model.
A Bloomberg Intelligence research note last month said AI remains the central worry for the services and consulting sector.
While Accenture's leadership has positioned it as a long-term beneficiary of this technology, concrete signs that AI is actually accelerating client demand remain limited.