French high-technology consultant Cap Gemini Ernst and Young announced todayit would cut 2,700 jobs to reduce costs in the face of diminishing sales expectations.
The news sent shudders through stock exchanges across Europe.
On the Paris stock exchange, Cap Gemini Ernst and Young shares dived euro 24.60, or 22.2 per cent, to euro 86 this morning after being suspended from trade earlier due to the sudden drop in value.
Cap Gemini cut its revenue target for 2001 to euro 9 billion from its earlier forecast of euro 9.6 billion issued at the start of the year.
Revenue in the first half of this year was tipped to be euro 4.4 billion, the company said in a statement.
In the worsening climate, Cap Gemini said it had decided to cut 2,700 jobs, mostly in Britain, Nordic countries, the United States and its telecommunications operations worldwide.
The slowdown was shown in "a change in behaviour of its clients and by the phasing, delay or even cancellation of a number of important projects," the group said.
Similarly, the telecommunications sector, "which began its own crisis several months ago, has continued its downturn in all countries where it represents a notable part of the revenues of the group".
AFP