Capgemini Stock Drops 2.77% at Close Following Announcement of 2,400 Job Cuts
Capgemini shares closed on Tuesday, January 20th at 133.30 euros, down 2.77% from the previous session. The IT services group announced it is considering up to 2,400 job cuts in France through reassignments and voluntary departures, representing nearly 7% of its French workforce. This decision comes in a context marked by a 5% decline in activity in France in the first half of 2025 and 4.7% in the third quarter. Investors reacted negatively to the news despite mixed analyst opinions.
Reasons Behind the Restructuring
The company justifies this reorganization as necessary to adapt to the accelerating technological changes, particularly artificial intelligence, in an economic environment characterized by moderate growth and major challenges for certain industries. The cuts affect 2,400 positions out of a total of 35,000 employees in France. The plan includes two measures: internal retraining towards future-oriented professions and certified pathways, or a collective conventional termination scheme. This slowdown is particularly linked to the persistent weakness in the industrial sector, including automotive. The project will be presented to the staff representative bodies for negotiation of a collective agreement defining the terms of support for the affected employees.
Analyst Recommendations
Regarding recommendations, BNP Paribas Exane is optimistic, raising its price target to 170 euros with an outperform rating, up from the previous target of 165 euros. This level represents a potential increase of 27.5% compared to the closing price. Jefferies has also adjusted its target to 145 euros from 130 euros previously, maintaining a hold recommendation, offering a potential of 8.8%. Technically, the stock has broken its support at 137.10 euros during the session, approaching its 200-day moving average established at 135.26 euros. The RSI at 42 reflects a neutral situation, with no immediate oversold signal despite the marked correction over seven days of 7.72%. Sustained crossing of the resistance at 151.85 euros remains a distant goal in the immediate future given the current volatility of 8.30 over a month.
