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Accenture Drops Global Diversity and Inclusion Goals Amid Political Shift

Accenture has announced the decision to discontinue its global diversity and inclusion (DEI) goals following an internal evaluation that considered the evolving political environment in the U.S. According to an internal memo shared with Reuters, the company will begin phasing out the diversity targets it set in 2017 and will no longer focus on career development programs for specific demographic groups.

This move reflects the broader trend among major tech companies, such as Meta, Alphabet, and Amazon, that have also scrapped their DEI initiatives in response to changing U.S. political dynamics, particularly during Republican President Donald Trump’s tenure. Accenture’s CEO, Julie Sweet, noted that the shift aligns with new executive orders from the Trump administration and the company’s evaluation of its internal policies.

Since President Trump’s inauguration, the administration has made efforts to dismantle DEI programs within the federal government and the private sector. Accenture’s decision to end its DEI goals means that these objectives will no longer be a part of performance evaluations for employees. Additionally, the company will pause its participation in external diversity benchmarking surveys and review its external partnerships related to DEI as part of a broader refresh of its talent strategy.

Accenture’s past diversity efforts had led to significant representation, with women comprising 48% of its workforce and 30% in managing director roles, as per its most recent annual report. The company also had specific race and ethnicity diversity goals for its U.S. and UK branches, which it introduced in 2020.

Meanwhile, proxy advisory firm Institutional Shareholder Services recommended that Apple investors vote against a proposal to remove the company’s DEI policies, reflecting a wider conversation about the role of diversity programs in major corporations.

Accenture Surpasses Revenue Expectations on Strong Demand for GenAI Services

Accenture (ACN) exceeded Wall Street’s first-quarter revenue and profit projections, reporting strong growth fueled by rising demand for its services in generative AI (GenAI). This growth has prompted a 6.5% increase in Accenture’s stock price during early trading on Thursday.

Growing Demand for GenAI Services

The surge in revenue comes as businesses increasingly focus on scaling AI projects, enhancing data security, and digitizing core operations to boost growth and reduce costs. Accenture is capitalizing on this trend, providing AI-powered solutions across various industries. These solutions range from predictive maintenance in manufacturing to automating advertising workflows.

Accenture’s GenAI business recorded new bookings of $1.2 billion, with $500 million in revenue, driven by a surge in AI project utilization. The company’s total new bookings for the quarter reached $18.7 billion, slightly higher than the previous year’s $18.4 billion.

Workforce Expansion

To meet the growing demand, Accenture has expanded its data and AI workforce to 69,000 employees and plans to increase this number to 80,000 by 2026. This expansion highlights the rising need for AI and data-driven services across industries.

Financial Outlook

Despite the strong results, Accenture’s revenue growth forecast for the year has been slightly raised to a range of 4% to 7%, compared to its earlier estimate of 3% to 6%. The midpoint of this range is lower than analysts’ expectations of 5.63%. For the second quarter, the company has forecasted revenue of between $16.2 billion and $16.8 billion, slightly below the average analyst estimate of $16.63 billion.

Quarterly Performance

Accenture’s first-quarter revenue reached $17.7 billion, surpassing the $17.12 billion forecast by analysts. The growth was driven by strong performance in the Americas and EMEA regions, as well as across the public service and health sectors.