In a week marked by seismic shifts in the technology and artificial intelligence sectors, two of the world’s most influential companies—Accenture and Nvidia—found themselves at the center of industry-defining news. Accenture’s ongoing restructuring, fueled by a multibillion-dollar investment in severance and a pivot toward artificial intelligence, coincided with a major shakeup in the AI chip market, as Nvidia’s stock dipped in response to a landmark deal between AMD and OpenAI. Together, these developments signal a new era of competition, transformation, and, for many workers, uncertainty.
Accenture, a global consulting and professional services powerhouse, has spent more than $2 billion over the past three years on severance as part of an aggressive workforce reduction and restructuring campaign. According to India Today Tech, the company’s global headcount dropped by over 11,000 employees in the past quarter alone, declining from 791,000 to 779,000 by the end of August 2025. This dramatic downsizing underscores the scale of change as Accenture adapts to new industry realities, particularly the rise of AI and automation.
CEO Julie Sweet did not mince words when addressing the company’s strategy. “We are moving on a compressed timeline,” Sweet told investors during a recent call, as reported by India Today Tech. “Where reskilling simply isn’t a viable path, we are making the difficult choice to exit people.” The company’s approach, she emphasized, prioritizes reskilling and upskilling, but acknowledges that some roles are no longer compatible with the evolving business landscape.
Severance and related costs reached a staggering $615 million in the quarter ending August 2025, with an additional $250 million anticipated in the current quarter. Accenture’s optimization program, launched in the fourth quarter of fiscal year 2025, is built around two pillars: workforce adjustment through severance and headcount reductions, and the sale of acquisitions that no longer fit the company’s strategic direction. The process, which is expected to continue through November 2025, is projected to ultimately save the company more than $1 billion.
But what’s driving this massive transformation? According to sources within Accenture cited by India Today Tech, the adoption of AI is a central factor. A business analyst at the company, speaking on condition of anonymity, described a sudden increase in employees “on the bench”—a term for staff without active projects. “I’ve seen a sudden spike in people who are without projects and they ask around in the office if there is a project available or not? It seems many are on the bench as well and that could be the reason [for layoffs],” the analyst said. The company is “investing a lot in AI, but at the same time a lot of people are on the bench.”
This pivot to AI is evident in Accenture’s numbers. Generative AI projects accounted for $5.1 billion in new bookings in the last financial year, up from $3 billion the previous year. The workforce now includes 77,000 AI and data professionals—a dramatic jump from 40,000 just two years ago. These so-called “reinventors,” as Accenture refers to them, are seen as the cornerstone of the company’s future. While upskilling is the preferred approach, reductions are unavoidable when redeployment isn’t feasible.
Accenture’s restructuring is not an isolated case. The broader tech sector is undergoing a similar transformation as companies weigh the benefits—and risks—of a leaner, more technologically advanced workforce. Tata Consultancy Services (TCS), for example, recently confirmed layoffs affecting around 12,000 employees, roughly 2% of its workforce, as AI continues to reshape the workplace.
Meanwhile, the competitive landscape in the AI hardware market has shifted dramatically. On October 6, 2025, Nvidia’s stock fell about 1.5% to ₹185.41 after rival Advanced Micro Devices (AMD) announced a multibillion-dollar partnership with OpenAI. According to Invezz, AMD’s shares soared by 32% on news of the deal, which will see OpenAI purchase 6 gigawatts worth of AMD chips—a move that signals OpenAI’s intent to diversify its chip suppliers beyond Nvidia, whose products have long dominated the AI hardware sector.
The agreement is more than a simple supply contract; it represents a potential turning point in the AI semiconductor race. Big tech firms such as Google and Amazon have already started producing their own chips, and OpenAI has a $10 billion partnership with Broadcom. The AMD deal, however, could further erode Nvidia’s near-monopoly in high-performance AI hardware.
Despite this setback, analysts remain overwhelmingly bullish on Nvidia’s prospects. Out of 66 analysts surveyed by FactSet, 60 rate Nvidia stock as a Buy, five as a Hold, and only one as a Sell as of early October 2025. Melius Research analyst Ben Reitzes, who maintains a Buy rating, recently raised his price target to ₹275 from ₹240, citing the ongoing wave of AI infrastructure spending. “OpenAI is scaring all the hyperscalers into spending in order to achieve ‘digital superintelligence,’” Reitzes wrote, according to Invezz. “Other than Nvidia and Apple, others in the Mag 7 cannot let Sam Altman win by spending more, not even Microsoft.”
KeyBanc, another major analyst firm, reiterated its Overweight rating and ₹250 price target on Nvidia ahead of its November 19 earnings report. The firm expects Nvidia to deliver stronger-than-expected results, forecasting third-quarter revenue of ₹56.3 billion and earnings per share of ₹1.28, compared with consensus estimates of ₹54.5 billion and ₹1.24, respectively. KeyBanc also projects Nvidia will ship about 30,000 racks in 2025, including 10,500 in the third quarter and 14,000 in the fourth, buoyed by manufacturing yields exceeding 85% for its GB series racks.
Goldman Sachs echoed this optimism, increasing its price target for Nvidia to ₹210 from ₹200 and maintaining a Buy rating. Analyst Toshiya Schneider emphasized that Nvidia’s strategic investments and partnerships, including with OpenAI, could provide “significant upside” to its 2026 earnings estimates. Schneider added, “We expect near-term strength in Nvidia’s fundamentals driven by upside from both hyperscalers and non-traditional customers—and continue to see the hyperscaler revenue contribution dominating the company’s revenue mix.”
While AMD’s deal with OpenAI may signal intensifying competition, most analysts believe Nvidia’s robust ecosystem and market leadership will sustain its dominance in the AI hardware space for the foreseeable future.
As AI continues to disrupt workflows, redefine roles, and upend established hierarchies, the stories of Accenture and Nvidia offer a glimpse into the high-stakes chess game playing out across the tech world. For workers and investors alike, the only certainty is that the pace of change is accelerating—and the winners and losers are far from decided.
