Cap Gemini Guts Staff.(Cap Gemini Ernst & Young and revises sales forecasts downwards)(Brief Article)

Chemical Market Reporter, July, 2001

Cap Gemini Ernst & Young revised downwards its sales forecasts for the first half to [epsilon]4.4 billion ($3.78 billion) and full year estimates to [epsilon]9.0 billion from [epsilon]9.6 billion. The company cites cancellation of certain key projects stemming from the slowdown in the manufacturing, high-tech and financial services sectors.

The company will reduce headcount by 2,700 in the US, UK and Nordic countries and across its Telco operations, and transfer 700 support staff to client-facing roles. The company estimates that the job cuts, along, with delaying certain market initiatives and cutting general expenditures, will improve operating margins in the second half between 8 and 9 percent, compared to 6 percent in the first half.