Consulting Firms Cut Growth Forecasts, Staff as Demand Slows

Consulting firms like Accenture and Deloitte are seeing slowing demand and cutting growth projections and costs. Accenture cut its 2024 revenue growth forecast from 2-5% to 1-3%.

Clients are tightening budgets and spending less on consulting services. Accenture's consulting revenue fell 3% in latest quarter.

Firms overhired during pandemic and now have excess staff with not enough client work. Some making new hires wait months to start jobs.

Deloitte launching major reorganization to simplify structure and reduce costs to address slowing demand.

Bright spot is demand to understand AI tools like generative AI. Accenture booked over $600M in AI work last quarter.