Layoffs and New Services Shake Up Cap Gemini

Cap Gemini is cutting back and growing at the same time. In response to worsening economic conditions, the company has announced plans to cut 2,500 jobs, bringing the total cuts this year to 5,400. Employees were notified in late November that the company was seeking 2,000 volunteers to participate in a layoff program. Now the consultancy is confirming plans to reduce the workforce by 2,500.

Cap Gemini chief executive, Geoff Unwin, has announced plans to retire next month. Paul Hermelin who is currently the company's chief operating officer will succeed him. Mr. Hermelin will retain the position of chief operating officer in addition to taking on the responsibility of chief executive officer.

Cap Gemini has also announced plans to launch a spin-off company tentatively called LPS, which stands for Local Professional Services. The company will be staffed by approximately 5,000 employees from France, the United States, Belgium, Holland, and Luxembourg.

The new company will provide manpower and expertise on a time and materials basis, whereby company engineers with knowledge of specific hardware and software will be provided on a daily or short-time basis. The goal is to attract smaller information technology projects that might normally be turned away by Cap Gemini.

Related news:

  • Cap Gemini to Slash Workforce
  • You may like these other stories...

    Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
    When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
    Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

    Upcoming CPE Webinars

    Aug 5
    This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
    Aug 20
    In this session we'll review best practices for how to generate interest in your firm’s services.
    Aug 21
    Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
    Aug 28
    Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.