French IT company Capgemini announced its decision to divest its U.S. subsidiary, Capgemini Government Solutions (CGS), following increased scrutiny over a controversial contract signed with the U.S. Immigration and Customs Enforcement (ICE) agency. This announcement comes in response to rising concerns among French lawmakers, including Finance Minister Roland Lescure, regarding the operational practices of ICE, particularly after two fatal shootings of U.S. citizens in Minnesota last month.
In a statement, Capgemini emphasized that it faced legal constraints tied to federal contracting in the U.S., which limited its ability to effectively oversee CGS’s operations and ensure they aligned with the company’s broader values and objectives. “Capgemini considered that the usual legal constraints imposed in the United States on contracting with federal entities conducting classified activities did not allow the Group to exercise appropriate control over certain aspects of this subsidiary’s operations,” the statement read.
The company clarified that the divestment process would begin “immediately,” yet it did not explicitly link the decision to CGS’s contract with ICE. Capgemini indicated that CGS contributes approximately 0.4% to the company’s projected revenue for 2025 and accounts for less than 2% of its total earnings in the United States.
Capgemini’s CEO, Aiman Ezzat, had acknowledged last week that the firm had only recently learned about the specific contract awarded to CGS by the U.S. Department of Homeland Security, which took effect in December 2025. Despite this, he maintained that Capgemini had no access to classified information or technical operations related to CGS, a stipulation governed by U.S. security regulations concerning government contracts. Ezzat noted that the company plans to scrutinize the details and terms of the contract, alongside reviewing CGS’s contracting practices.
The unfolding situation highlights the delicate balance multinational companies must navigate when dealing with federal entities, especially in contexts that can lead to public controversy and scrutiny. As Capgemini moves forward with its divestment, the implications for its business strategy and reputation in the U.S. market remain to be seen.
