French IT behemoth Capgemini has decided to terminate 500 Indian employees, and the reason is slow business growth.
The management has clearly indicated that 2020 looks gloomy, and this indirectly means that more employees can be fired in the coming days.
Capgemini Terminates 500 Employees
It seems that 2019 will be remembered best for IT layoffs. After Cognizant confirmed 16,000 terminations, and Infosys said that 12,000+ employees will be fired, its the turn of Capgemini to take the layoff route, in order to sustain themselves.
Capgemini is going to terminate 500 Indian employees, and the reason is that several of their projects have been scaled back.
Capgemini has around 1 lakh employees in India, which is 50% of their global workforce. They have campuses in Bengaluru, Hyderabad, Gurgaon, Ahmedabad, Bhubaneswar, Chennai, Pune, Salem, Trichy, Mumbai and Kolkata.
It is not yet clear, employees from which locations are being terminated.
The Reason For Capgemini Layoffs
In a statement, Capgemini has stated that their global workforce increased by 5.1% in the last year, but they admitted that ‘departures’ are part of the process.
Their statement said, “.. As with any large company in our industry, there is a constant flow of departures, reskilling, reassignments and arrivals..”
As per reports available, several projects handled by Capgemini has been scaled back, and this can be the primary reason for firing 500 employees.
Around 27% of revenues generated by Capgemini comes from financial services, and they serve 9 of the top 15 banks, globally.
Besides, they have reduced the growth outlook for 2019, to 5.5%, which is at the lower end of what they announced in February.
Capgemini Is Optimistic About Growth
Having said that, Capgemini has expressed confidence in Indian operations and have assured that the momentum will be kept on.
The statement from the company said, “… The net headcount in India has continued to grow well with strong hiring year-on-year and our perspectives for 2020 looks good too…”
In 2017, Capgemini had announced that they will recruit 20,000 Indians, and reskill 45,000 of existing employees. In general, Capgemini employees are kept on bench for 90 days, after which, they are moved to the broader corporate pool for allocating any billable projects.
The employees who are being fired in India have gone through this process, and were unable to find a project.
We will keep you updated, as more details come in.
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