Capgemini plans up to 2,400 job cuts in France as demand weakens

Capgemini plans to cut up to 2,400 jobs in France, about 6% of its workforce in the country, as the IT services group grapples with weak demand across key sectors in its home market, Reuters reported on Tuesday.

The French company told Reuters that an economic slowdown has weighed on client spending in certain industries, with the automotive sector among the most affected. The pressure has reduced demand for technology services, prompting the company to review staffing levels in France.

Capgemini said the planned reductions would be carried out exclusively through voluntary departures, rather than compulsory layoffs. It also intends to offer internal retraining programmes to employees in divisions facing declining demand, as it seeks to redeploy skills in areas where client requirements remain stronger.

The company added that the plan is subject to negotiations with labour unions, a standard requirement under French labour law, and will proceed only if agreements are reached.

The move highlights the uneven recovery in Europe’s technology services market, where companies are contending with cautious corporate spending, delayed transformation projects and sector-specific weakness. France-based IT services firms have been particularly exposed to slower activity in manufacturing-linked industries.

Capgemini, one of Europe’s largest IT consulting and outsourcing groups, has previously signalled a challenging near-term outlook in parts of its European business, even as demand for digital, cloud and data-led services remains more resilient in other regions.

Looking ahead, the company’s ability to balance cost control with retraining and redeployment will be closely watched, as it seeks to protect margins while positioning itself for a recovery in client spending once economic conditions stabilise.