Cap Gemini Ernst & Young, the management consultancy that has cut 3,500 staff from its 60,000 worldwide workforce this year, will next week announce more cuts which could cost a further 2,000 jobs.
The group has pencilled in 13 December for an update on its prospects. CGE&Y is heavily exposed to the technology sector, which has been difficult, and is only just coming to terms with bringing together the Cap Gemini and E&Y Consulting businesses after last year's merger.
In a circular published last week, stockbroker CSFB said: "We believe that CGE&Y is in the process of instituting at least 2,000 headcount reductions." It would not comment further on the note.
So far CGE&Y has announced at least two rounds of job cuts, with 750 posts going in the UK as part of a pruning of 3,500 jobs worldwide. It has also cut the pay of its top managers by as much as 30 per cent.
CGE&Y is not the only firm in its sector to be suffering. McKinsey, the strategy consultancy that has advised Railtrack, the BBC and Kingfisher, has cut more than 200 jobs. It has said that these were mostly support staff, and few actual consultants are leaving the prestigious firm.Reuse content