2,700 jobs to go at Cap Gemini Ernst & Young

Cap Gemini Ernst & Young plans to axe 2,700 jobs worldwide
after it issued a profits warning.

The bulk of the redundancies will be made in the US and Scandinavia,
with the company’s global telecoms division the hardest hit. No further job
cuts are planned in the UK, said the company.

The UK has already suffered its share of job cuts when the
company slashed 277 jobs in its telecoms and media segment.

Maurice Abell, chief executive of Cap Gemini in the UK and
Ireland, said, “Most of our business in telecoms is for the likes of BT and
Vodafone – we are know how they are suffering with volumes and the development
of third-generation mobile.”

The computer services company blamed its profit warning on a
‘marked slowdown’ in bookings in recent weeks. It cut its full-year revenue
forecasts by 660m euros to 9bn euros and lowered full-year margin forecasts
from 10.5 per cent to 7.5 per cent.

By Karen
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