Accenture Forecast Miss Signals Weak IT Spending

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Accenture forecast third-quarter revenue below Wall Street expectations, reflecting continued caution among clients on large-scale IT spending.

The company expects revenue between $18.35 billion and $19.00 billion, with the midpoint slightly under analyst estimates. The outlook highlights ongoing hesitation among businesses to commit to major transformation projects amid economic uncertainty.

Enterprises are increasingly delaying or scaling back large IT investments, prioritizing cost control over expansion. This trend is affecting consulting and technology service providers that rely on long-term digital transformation contracts.

The forecast underscores broader weakness in corporate tech spending despite ongoing interest in emerging areas such as artificial intelligence.

Oracle to Reportedly Lay Off Thousands of Employees

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The job cuts are part of a “reduction in force and other terminations,” Oracle said, adding that its Seattle sites will remain open. The company had about 162,000 full-time employees globally as of May 2025.

The WARN Act requires employers to provide at least 60 days’ notice ahead of layoffs.

Oracle declined to comment on the CNBC report, although several social media users on Reddit, X and anonymous workplace network Blind, shared details of the potential cuts, fuelling uncertainty and confusion among employees.

In a March filing, Oracle said it expects total costs tied to its fiscal 2026 restructuring plan to reach up to $2.1 billion (roughly Rs.19,556 crore), largely driven by employee severance and related expenses.

Shares in the company climbed more than 5 percent in afternoon trade, but remained down about 29 percent this year so far.

Meanwhile, more than 70 tech companies have cut around 40,480 jobs so far this year, per Layoffs.fyi, as companies increasingly reallocate resources toward AI, heightening fears of AI-driven disruptions among workers.

X Restored After Brief Outage in US

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Elon Musk’s social media platform X experienced a brief outage affecting thousands of users in the United States before services were restored.

At the peak of the disruption, more than 34,000 users reported issues, according to outage-tracking platform Downdetector. The number of reports later dropped significantly as the platform recovered.

Downdetector compiles user-submitted reports to estimate service disruptions, meaning the actual number of affected users may vary.

X did not immediately comment on the cause of the outage.