Capgemini is preparing to reduce its workforce in France by as many as 2,400 employees as part of a broader restructuring exercise aimed at aligning the business with artificial intelligence-led demand and addressing softness in certain service lines. The planned reduction will be carried out largely through voluntary departures.
The move will impact nearly 7 per cent of Capgemini’s French employee base. Affected employees will either exit the organisation or be reskilled and redeployed into areas where demand is stronger, including data engineering, cloud services and artificial intelligence. The decision reflects the growing need for IT services firms to rebalance talent as client spending shifts toward digital transformation and automation-led solutions.
Although the company has not disclosed the financial outlay associated with the restructuring, analysts expect the total cost to cross €100 million. The bulk of the financial benefits are expected to be realised from the second half of 2026 and extend into 2027, once workforce optimisation and redeployment efforts stabilise.
The French business has been underperforming relative to Capgemini’s other geographies. Operating margins in France are estimated to be below 10 per cent in 2025, prompting management to take corrective steps. The workforce realignment is intended to lift utilisation levels and bring French margins closer to group benchmarks.
Capgemini is targeting operating margins of around 11–12 per cent in France by 2027. This improvement is expected to be supported by stronger execution in 2026 and the full-year consolidation of WNS, which is likely to aid margin expansion across the group.
In the near term, the restructuring is expected to place mild pressure on free cash flow. Analysts now estimate Capgemini’s 2026 free cash flow to be slightly above €2 billion, with restructuring costs likely exceeding those incurred in 2025.
