Cap Gemini’s decision to axe over 700 of its UK workforce will have implications for the company’s Dublin office, a spokesperson has confirmed.
Speaking to siliconrepublic.com, the spokesperson explained that in light of Cap Gemini’s decision to axe 25 jobs at the French IT services company’s Dublin office in August, the present round of cuts are expected to be minimal in comparison with the UK. The August cuts amounted to some 22pc of its workforce of 110 people in Ireland — leaving it with a current complement of 85 people.
The cuts at the company’s UK offices equal about 10pc of Cap Gemini’s workforce there, and are, according to the spokesperson, necessary to better respond to the current market conditions and a harsher operation environment.
Cap Gemini spent US$10.5bn (€10.4bn) in 2000 for the consulting arm of Ernst & Young. Unfortunately, the acquisition coincided with the biggest slump in computing history and the company has been struggling to integrate the unit as clients continued to cut budgets.
The company is understood to be cutting over 3,000 jobs in total in order to lower costs and improve its operating margin.
The spokesperson said: “At the moment we can’t confirm any numbers for Dublin. We are in the process of identifying people with HR. I can say that the impact will be minimal in light of the fact that there were significant cuts in August.”
In the company’s most recent financial results, revenues decreased 14.2pc over the previous year to €1.6bn.
By John Kennedy