“We estimate cost of $1.5 billion through fiscal year 2024, of which we expect to incur approximately $800 million in FY ‘23 and $700 million in FY ‘24, comprised of approximately $1.2 billion in severance and $300 million for the consolidation of office space.”

In context

“e market. Over to you, KC. KC McClure: Thank you, Julie and thanks to all of you for taking the time to join us on today’s call. We were pleased with our overall results in the second quarter, setting a new bookings record at $22.1 billion, $2.5 billion higher than our previous record set in Q2 of last year, with consulting bookings close to matching our previous record. We delivered revenue growth for the quarter at the top end of our guided range as we continue to deliver on our shareholder value propositions. Before I summarize results for the quarter, let me spend a moment on the business optimization actions we are taking to reduce costs for fiscal ‘24 and beyond, which includes streamlining operations, transforming our non-billable corporate functions and consolidating office space. We estimate cost of $1.5 billion through fiscal year 2024, of which we expect to incur approximately $800 million in FY ‘23 and $700 million in FY ‘24, comprised of approximately $1.2 billion in severance and $300 million for the consolidation of office space. These actions are expected to impact roughly 2.5% or 19,000 of our current workforce, of which over half are non-billable corporate functions and include over 800 of our more than 10,000 leaders across our markets and services. Nearly half of the 19,000 people will depart by the end of fiscal year ‘23. Now, let me summarize a few of the highlights for the quarter. Revenues grew 9% local currency, driven by broad-based growth across all markets with more than half of our 13 industries growing double-digits. We also continue to extend our leadership position with growth estimated to be about 2x the market, which refers to our basket of publicly traded companies. In Q2, we recorded $244 million in cost associated with the business optimization actions, which impacted operating margin by 150”