San Francisco Frontiers - French IT giant Capgemini to sell US subsidiary after row over ICE links

Capgemini, which operates in about 50 countries and is one of France's largest listed companies, held an extraordinary board meeting this weekend after facing questions in parliament and calls for transparency from the government.

The company has been in the spotlight for days over the deal its American subsidiary signed with ICE to identify foreigners on US soil and track their locations.

The killings of two people -- Renee Good and Alex Pretti -- by ICE and CBP border patrol agents in Minneapolis have provoked widespread condemnation of the American agency.

"The divestiture process of this business will be initiated immediately," the company said in a statement, referring to Capgemini Government Solutions.

"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," the statement said.

The subsidiary represents 0.4 percent of the group's global 2025 estimated revenue and less than two percent of its US revenue, the company said.

In an internal message sent to employees earlier this week, the group said that the disputed contract, awarded in December, was "the subject of an appeal".

Frederic Bolore of the CFDT union said that he had "never experienced a crisis situation like the one today" in his 32 years with the company.

"It's a huge shock for the employees," he told AFP on Thursday.

Campaign group Multinationals Observatory has revealed the ICE contract.

- 'Like a bounty hunter' -

Chief executive Aiman Ezzat wrote on LinkedIn last week that the management "were recently made aware, through public sources" of the contract with Capgemini Government Solutions.

At CGS, "decision making is separate, networks are firewalled, and the Capgemini group cannot access any classified information (or) classified contracts," Ezzat added.

Public US government documents show that the ICE-CGS contract signed on December 18 is worth $4.8 million.

The revelations sparked uproar in France and earned a rebuke from Economy Minister Roland Lescure, who called for transparency.

On Satuday, Multinationals Observatory said Capgemini's subsidiary had been providing services to ICE even before signing the contract in December with President Donalt Trump's administration.

"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," the campaign group said.

Multinationals Observatory said the US subsidiary was not just providing logistical support to ICE, but was "at the heart of the machine."

"Its final remuneration will depend on the number of people it has helped to detain and deport, much like a bounty hunter," it said.

On 20 January, Capgemini announced up to 2,400 job cuts in France through redeployments and voluntary departures.

D.Robinson--SFF