Cap Gemini expects 10% revenue fall
IT consulting and software company Cap Gemini Ernst & Young expects first quarter revenues to drop by more than 10% due to a 12% slump in orders in the second half of last year.
The news came as the company revealed a fall in pre-tax profits to ? ¬290m (£177.1m) for the 12 months ending 31 December compared to ? ¬884m last year. Revenues were flat at ? ¬8.4bn, although turnover in the UK was up 5.9% to ? ¬1.4bn.
The news follows a year in which the company has regularly cut earnings expectations.
Paul Hermelin, the newly appointed chief executive, said he wants to cut the company’s reliance on consultancy projects for multinational customers.
In the UK in June Cap Gemini cut 250 jobs from its 9000 staff. The cuts hit consultants and marketing and administrative staff. The cuts were made to take advantage of cost savings following its merger with Ernst & Young’s consulting arm, which it bought in 2000, and followed a review of its business.
Worldwide the company cut a total of 5400 staff last year which made up 9% of its workforce