Capgemini says goodbye to 500 in India while business slows
BENGALURU Capgemini he laid off almost 500 employees in India after some of his clients reduced their projects and other accounts did not increase as fast as the company expected.
The French IT services firm allows employees to be in the bank for approximately 90 days in their business units and then transfers them to a corporate group to find billable projects, sources told TOI. The dismissed employees were those who went through this process and could not find billable projects.
India, with 1.08 lakh employees, accounts for more than half of Capgemini’s global strength, and is a core part of the company.
When asked about layoffs, the company said: “As an IT services company, our people are at the heart of our business and we are permanently implementing generalized overhaul programs to develop new capabilities that meet the changing needs of digital transformation of customers. The net workforce in India has continued to grow well with strong annual hiring and our prospects for 2020 also look good. As with any large company in our industry, there is a constant flow of departures, disqualifications, reassignments and arrivals. Globally, we also continue to increase: in our third quarter results (October 24), our general workforce increased by 5.1% year-on-year ”.
Last month, Capgemini said given the softer economic environment, it has reset the growth target for 2019 at around 5.5% in constant currency, a rate which was the lower end of the range announced in February.
Capgemini counts McDonald’s, Zurich Insurance Group, MAN and EDF as some of its key customers. The company gets 27% of its revenue from financial services and it works with nine of the world’s 15 largest banks.