PracticeConsultingCap Gemini Ernst & Young axes jobs

Cap Gemini Ernst & Young axes jobs

Cap Gemini Ernst & Young is to cut 2,700 jobs across the globe due to an economic down turn in consulting revenue.

The consultancy blamed delayed or cancelled orders in the financial services industry in the US and Benelux, among US and Nordic tech firms and in US manufacturing. Revenues for 2001 are now estimated at £5.5bn, a growth rate of 5.9 per cent, rather than the £5.86bn originally estimated.

This has led to the adoption of cost action plans which include job cuts, which the company stressed included 250 of its 9000 UK staff already announced at the beginning of June.

A company statement issued today said: ‘Activity in the group over the last weeks has experienced a marked slowdown which has been evidenced by a change in the behaviour of its clients and by the phasing, delay or even cancellation of a number of important projects.’

Cap Gemini said that after its expense-cutting measures, which will cost £51.9m, it would make an eight to nine per cent operating profit in the second half of the year, providing the market doesn’t get any worse.

The downturn has already affected Accenture which cut staff globally earlier this month by 1,400 people, with 800 of those through a special voluntary sabbatical for consulting personnel.

KPMG consulting has also been forced to shed up to 10% of its consultancy staff.

Links

UK jobs cut at Cap Gemini Ernst & Young

Firms admit consulting jobs at risk

Consultant cuts 5% of workforce

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