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The company said on Wednesday that its Irish staff levels would be reduced to 85 following the 22 percent cut in its Dublin-based workforce. This affects employees at all levels and, according to a spokesperson for CGEY, the departing workers have already been notified. None of the redundancies were voluntary.
In late June 2002, the company said it had plans to cut 5,500 jobs globally over the next six months as it came to terms with the slump in the telecommunications and financial-services businesses.
"Between 1995 and 2000, companies were rapidly and heavily investing in IT," CGEY said in June. "They are now giving priority to making those investments profitable. Although the market still demands consulting and IT services, these sectors are experiencing a different kind of price and competitive dynamics, in particular with strong price pressure in IT services."
Those job cuts were designed to streamline CGEY's administrative operations and came on top of 5,400 redundancies announced by the firm last year. At least 20 Irish jobs were lost in that round of cuts.
Around 2,500 of the global redundancies announced in June took place immediately in the business' telecom and financial-service sectors. Another 3,000 jobs, largely in back-office positions, were set to be eliminated by January. It is expected that Cap Gemini will take a charge of EUR230 million for the cuts in its 2002 year-end results.
When the firm announced the cuts, it also said it was putting in place a new management structure to improve profitability and sales in its three main businesses -- consulting, information technology, and outsourcing. This included new managers in different regions and divisions within the firm.
The Cap Gemini Ernst & Young Group is one of the largest consulting organisations in the world, offering management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities. The company now employs around 49,500 people worldwide.
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