Accenture has reportedly asked its employees to carry over unused vacation days into the next financial year, according to a Bloomberg report. Accenture's memo to it's staff comes as a break from its usual policy as the consulting giant seeks to drive more business before its fiscal year ends in August, as reported by Bloomberg.<\/p>\n
The one-time change means Accenture staff can roll over any unused holiday entitlement when the company\u2019s new financial year begins on September 1. The move comes as Chief Executive Julie Sweet urged employees to help generate more business before the current fiscal year closes.<\/p>\n
Julie Sweet has called on employees to increase sales and expand client work before the end of the quarter, following a weaker-than-expected third-quarter performance that sent Accenture shares sharply lower.<\/p>\n
\u201cOur shareholders are counting on us to deliver a strong quarter in Q4 \u2014 everyone can contribute,\u201d Sweet wrote in a memo to staff seen by Bloomberg. \u201cThis means we all need to find more ways to serve clients that create more revenue in the quarter and to originate more sales (small, large, mega) to finish strong.\u201d<\/p>\n
The temporary holiday policy is part of the broader sales push, according to Bloomberg report citing people familiar with the matter. Allowing employees to carry forward their accrued leave could encourage more staff to remain at work during the final quarter rather than taking time off before unused days expire.<\/p>\n
The sales drive follows a challenging third quarter for Accenture. New bookings fell 2% in the quarter ended May 31, while the company forecast revenue of $17.75 billion to $18.4 billion for the three months through August.<\/p>\n
That outlook was below the $18.47 billion average estimate among analysts tracked by Bloomberg.<\/p>\n
Investors reacted sharply to the results. Accenture shares fell 18% to $127.98 on June 18, marking one of the company's steepest one-day declines.<\/p>\n
Julie Sweet has described AI as a \u201ctailwind\u201d for Accenture, arguing that the technology could create new opportunities for the company. Investors, however, remain focused on whether AI could reduce demand for some traditional consulting and services work.<\/p>\n
\u201cAI remains the dominant concern for services and consulting,\u201d Bloomberg Intelligence wrote in a research note last month. \u201cThough management positions Accenture as a long-term AI beneficiary, tangible evidence that AI is accelerating demand is limited.\u201d<\/p>\n
Accenture shares have since recovered from their June low, closing at $171.11 on August 7. Despite that rebound, the stock remains down more than 36% this year.<\/p>\n
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