Capgemini Announces Divestment of US Government Solutions Unit
French multinational information technology services and consulting company Capgemini SE has revealed plans to divest its US-based subsidiary, Capgemini Government Solutions. This strategic move comes as the unit faces mounting scrutiny and criticism over its contractual engagements with the United States Immigration and Customs Enforcement (ICE), a key agency under the Department of Homeland Security.
Immediate Sale Process Initiated Following Statement
According to an official statement released on Sunday, Capgemini will immediately commence the sale process for this specific subsidiary. The company cited significant legal and operational challenges as the primary drivers behind this decision. "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 to ensure alignment with the Group's objectives," Capgemini elaborated in its detailed announcement.
Political Pressure and Governance Concerns
The decision follows direct inquiries from French Finance Minister Roland Lescure, who last week demanded clarifications regarding Capgemini's connections to ICE. In response, the company had previously informed the minister that the subsidiary operated under separate governance structures and that the parent organization was not fully aware of the specific contracts it had secured. This revelation has placed Capgemini under intense political and public spotlight, especially concerning ethical business practices and corporate accountability.
Growing Backlash Against ICE Contracts
Businesses associated with ICE have increasingly faced severe backlash due to the agency's role in implementing contentious immigration policies, including the Trump administration's mass deportation initiatives. Public criticism has intensified following recent incidents, such as the second killing of a US citizen during an immigration enforcement operation in Minneapolis last month. These events have amplified concerns about the tactics employed by ICE and the ethical implications for companies providing services to the agency.
Historical Contractual Ties Revealed
Investigative reports from French media outlet Observatoire des multinationales last month uncovered that Capgemini has maintained contractual relationships with ICE since at least 2007. More recently, in December 2025, Capgemini Government Solutions secured a new contract related to "skip-tracing," a process designed to locate individuals. This specific contract has raised significant ethical questions about the nature of the work being undertaken.
CEO's Response and Financial Impact
In a LinkedIn post last week, Capgemini CEO Aiman Ezzat addressed the growing concerns, stating, "The company had been made aware, through public sources, of the nature of a contract awarded to CGS by DHS's Immigration and Customs Enforcement in December 2025. The nature and scope of this work has raised questions compared to what we typically do as a business and technology firm." Financially, the subsidiary represents a relatively small portion of Capgemini's overall revenue, accounting for approximately 0.4% of the group's global estimated revenue for 2025 and less than 2% of its US revenue.
Strategic Realignment and Future Implications
This divestment marks a significant step in Capgemini's efforts to realign its operations with its core business objectives and ethical standards. By shedding the US government solutions unit, the company aims to distance itself from controversial contracts and refocus on its primary technology and consulting services. The move also highlights the increasing pressure on multinational corporations to carefully evaluate their partnerships and contractual engagements, particularly in politically sensitive areas.
The sale process is expected to attract attention from potential buyers in the government IT services sector, while stakeholders will closely monitor how Capgemini navigates this transition and reinforces its commitment to corporate governance and social responsibility.
