French IT Giant Capgemini Cuts Ties with ICE-Linked Subsidiary Following Global Outcry
In a significant corporate move, Capgemini, the French multinational information technology services and consulting company, has announced its decision to divest a subsidiary that was contracted by the United States Immigration and Customs Enforcement (ICE) agency. This announcement came on Sunday following intense global outrage over two fatal incidents during ICE operations that resulted in widespread condemnation.
Immediate Divestiture Process Initiated
The Paris-based technology powerhouse, which operates in approximately 50 countries and ranks among France's most prominent publicly listed corporations, stated that "the divestiture process of this business will be initiated immediately." This decisive action follows an urgent board meeting convened over the weekend, during which the company navigated parliamentary inquiries and government demands for operational transparency.
According to the official statement released by Capgemini, "Capgemini determined that the customary legal restrictions imposed for contracting with federal government entities carrying out classified activities in the United States did not allow the Group to exercise appropriate control over certain aspects of the operations of this subsidiary." This admission highlights the complex regulatory environment surrounding government contracts involving classified information and operations.
Contract Scrutiny and Financial Impact
The organization has faced intense scrutiny in recent weeks over an agreement its American unit, Capgemini Government Solutions (CGS), entered into with ICE. This contract involved tracking and identifying foreign nationals within the United States, a sensitive area of immigration enforcement that has drawn significant public attention.
Company data reveals that the subsidiary in question represents a relatively small portion of Capgemini's overall business, accounting for just 0.4% of the group's projected 2025 global earnings and less than 2% of its American revenue. Despite this modest financial contribution, the political and reputational implications have proven substantial.
Triggering Events and Global Response
The deaths of two individuals — Renee Good and Alex Pretti — at the hands of ICE and Customs and Border Protection (CBP) personnel in Minneapolis have triggered universal condemnation of the US federal agency. These incidents, which occurred during enforcement operations, sparked protests and demands for accountability from human rights organizations and government officials worldwide.
In France, the disclosures caused significant backlash, drawing a formal reprimand from Economy Minister Roland Lescure, who insisted on full disclosure from the company regarding its involvement with US immigration enforcement agencies.
Internal Communications and Union Response
In a staff memo distributed earlier this week, Capgemini noted that the contentious contract, finalized in December, was currently "the subject of an appeal." Last week, Capgemini Chief Executive Aiman Ezzat wrote on LinkedIn that management "were recently made aware, through public sources" of the contract with Capgemini Government Solutions.
Ezzat further clarified that at CGS, "decision making is separate, networks are firewalled, and the Capgemini group cannot access any classified information or classified contracts." This statement aimed to address concerns about corporate oversight and data security.
Frederic Bolore, representing the CFDT union, expressed shock at the situation, telling AFP news agency that he had never witnessed a crisis of this magnitude during his 32-year tenure at the firm. "It's a huge shock for the employees," he emphasized, highlighting the internal impact of the controversy.
Campaign Group Exposé and Contract Details
The campaign group Multinationals Observatory originally exposed the ICE partnership, bringing the contract to public attention. Public federal records indicate that the ICE-CGS agreement, signed on December 18, is valued at $4.8 million.
On Saturday, Multinationals Observatory made further allegations, claiming that the Capgemini unit had been serving ICE even prior to the December contract with the administration of then-President Donald Trump. The campaign group stated: "Documents suggest that, contrary to what the group's management claims, Capgemini Government Solutions was already providing skip tracing services to Trump's anti-migrant police before signing its controversial new contract in December."
Broader Organizational Changes
Separately, on January 20, Capgemini revealed plans to cut up to 2,400 positions in France through a combination of voluntary exits and internal redeployments. This restructuring announcement adds another layer to the company's current challenges as it navigates both operational adjustments and reputational management in the wake of the ICE contract controversy.
The divestiture decision represents a significant corporate response to mounting pressure from multiple stakeholders, including government officials, human rights advocates, and the general public, who have expressed growing concerns about corporate involvement in controversial government enforcement operations.
