On Friday, French IT consulting group Capgemini announced it now expects annual revenue to decline, revising its earlier forecast of stable growth, due to weakness in the North American market. The Paris-based company predicts organic sales will fall between 0.5% and 1.5%, a shift from the previously anticipated 0-3% increase.
CEO Aiman Ezzat stated that the recovery in the second half will be impacted by a deteriorating outlook in the automotive and aerospace sectors and a slower recovery in financial services. Despite this, the group confirmed its 2024 operating margin and organic free cash flow targets.
Capgemini’s total headcount was 336,900 at the end of June, down 4% year-on-year, with 337,200 employees at the end of March. The company has slowed hiring since 2023, ending the year with 5% fewer employees, a first since 2009.
For the first half of the year, Capgemini reported revenue of 11.14 billion euros ($12.09 billion), a 2.5% decrease year-on-year on a reported basis.
