Accenture to undergo round of redundancies, with up to 70 underperforming MDs on the chopping block
Consulting company Accenture will take an axe to its Australian executive team, making up to 70 managing directors redundant.
The Australian Financial Review reports that this could constitute up to a quarter of local MDs, with the consultancy confirming that the redundancies are due to an “overcapacity of skills in certain areas”. A spokesperson did not comment on the number of redundancies, but said they would affect “a very small percentage” of employees.
“We remain committed to our business in Australia and New Zealand and believe these markets offer strong opportunities for our future growth,” the spokesperson said.
“Following a review of our current business we have identified an overcapacity of skills in certain areas and will need to rebalance our workforce. This will affect a very small percentage of our workforce in ANZ.
“Additionally, we continue recruiting for specialised skills and leadership talent in areas where we need to add capacity to meet client demand.”
The AFR reports that underperforming MDs will be first on the chopping block. Those deemed to have underperformed will be most at risk, followed by those placed on performance improvement plans, Accenture’s ANZ chair Bob Easton reportedly told executives last week.
This week, The Monkeys’ Mark Green became the lead of Accenture Interactive Australia and New Zealand. Easton said the appointment comes at a “very exciting time”, as the business “continues to grow at pace and scale”.
Green’s co-founders at The Monkeys, Justin Drape and Scott Nowell, were also named Accenture Interactive’s co-chief creative officers, with all three performing these roles in addition to their agency responsibilities. The appointments follow Accenture’s purchase of the agency in 2017 for $63m.
Newell, Drape and Green
In addition to The Monkeys, the consultancy has made a global series of agency acquisitions including UK’s Karmarama, design firm Fjord and e-commerce specialist Acquity Group.
Earlier this year, the consultancy’s agency arm, Accenture Interactive, bought iconic agency Droga5 in its largest deal to date.
Brittney Rigby was Mumbrella's deputy managing editor - news and analysis. She left Mumbrella in April 2021.
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That’s a lot of underperforming senior staff. One could assume there would be a significant flow-on effect to the middle ranks and contractors that make up the Accenture workforce.
As for AI, putting an ad agency guy in charge of a largely tech-first business, with little exposure to partners like M/SF/A/O seems like an odd choice.
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What’s the collective noun for 70 under performing Managing Directors?
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I wouldn’t trust my marketing to an agency (or accountants) that lets the phrase “70 under performing managing directors” into the press.
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A waste.
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the economy is struggling and most companies are finding it hard to hit their numbers.
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“This will affect a very small percentage of our workforce in ANZ.”
If 70 Managing Directors is a “small percentage” how many did they have to start with?!
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A cluster?
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Most CMOs have realised that ‘tech-first’ is largely worthless without a solid understanding marketing fundamentals. And most consultants are nothing more than spruikers for Adobe, Salesforce et al.
I’d take Mark’s extensive experience of building brands over tech consultant lifers any day.
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A WPP?
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‘Recession’ anyone?
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A consultancy?
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+1
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this release certainly hammers home the point that PR is a gap in their offering
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There’s at least a dozen seasoned CMOs looking for a proper gig at the moment. Many of them ignored tech entirely, others cocked up the implementation because understanding it ended at a powerpoint presentation, and a remaining few thought changing ad agencies and/or brand refresh would replace the need to fix their crappy customer experience.
These terminally unemployed types can rely on the occasional speaker gig to do some chest beating though!
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A LOT. The Accenture model is hundreds of MDs in each region, but due to the centralised model none of them actually have much control or decision-making ability.
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There’s “at least a dozen seasoned CMOs looking for a proper gig at the moment”. What the hell does that have to do with anything? In your view – from a distance – they ignored tech? There could be hundreds of reasons they aren’t in work, most of which neither you nor I would have a clue about.
There are hundreds of ‘digital transformations’ where the benefits have been oversold (& never realised) and the implementation has been carried out by a bunch of lifer consultants who have little understanding or experience in actually delivering a marketing program. The failure rates of these programs are well known and it can’t be ‘the client is an idiot’ in all of these instances. Failure rates of over 50% suggest a systematic industry failure.
So, back to the original point.
I’d back Mark’s track record of growing brands – including both his clients’ and that of The Monkeys – and Accenture’s choice to appoint him as CEO of AI over the opinion of the Peanut Gallery every time. It is what the market needs: a proven marketing talent who understands the connection between all facets of marketing and commercial success.
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Comment of the year, surely.
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Now I know the NBN rollout is complete.
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Unfortunately this is now a company who has lost its way. Forcing employees to take roles that is not their area of expertise all for the sake of being chargeable to any client.
From a dynamic forward thinking amazing company to a narrow minded management team with no vision. No wonder they have not met targets in 2 years ! Sad and very toxic place to work.
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