Thursday, May 10, 2001
What's the Buzz?
Cap Gemini feels pinch, fires 30
The city's largest information technology consulting firm has downsized. Cap Gemini Ernst & Young fired 30 of its roughly 340 workers as demand for its services has fallen off.
“We're in the process of reducing staff within a very specialized team of technologists,” said David Schutzman, Cap Gemini's director of public relations for North America. The group was akin to a temporary agency for programmers, “filling staffing gaps for clients in need of hard-to-find skills,” he said. As the economy softened, demand for those skills weakened.
The 30 workers fired were given severance benefits, he said.
Technology consultants' business has been hurt by the Internet crash and the end of the Y2K efforts. Companies have slowed their Internet spending, and with Y2K behind them, they have more of their own technology people available, and need consultants less.
Cap Gemini became the city's largest IT consultant amid problems at MarchFirst, which downsized, sold assets and filed for Chapter 11 reorganization.
— John Byczkowski
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