French IT consulting group Capgemini forecast a surprise fall in annual revenue on Friday, citing persistent weakness in its North American market. The Paris-based group said it now expects its organic sales to fall between 0.5% and 1.5% in 2024, compared with the 0-3% rise previously forecast.

“The slope of recovery in the second half will be affected by the recent deterioration of the outlook in the automotive and aerospace sectors and the slower recovery in financial services,” CEO Aiman Ezzat said in a statement.

The company posted a 5.4% year-on-year decline in revenue from the North America region in the first half of the year, slower than the 7.1% fall seen in the first three months of 2024.

The market was the second biggest for the group, accounting for 28% of its revenue in the first half of the year. It was a drag on Capgemini’s results last year as well, amid a tech sector downturn.

CEO Ezzat, however, said in a press call that North America was the region showing the strongest recovery between the first and second quarters.

The group’s total headcount stood at 336,900 at the end of June, down 4% year-on-year. The headcount was 337,200 at the end of March. Capgemini has slowed hiring since 2023, ending the year with 5% fewer resources than it started it with, a first since 2009.

The French group reported H1 revenue of 11.14 billion euros ($12.09 billion), down 2.5% year-on-year on a reported basis.

The group confirmed its 2024 operating margin and organic free cash flow targets. ($1 = 0.9211 euros)

French IT consulting group Capgemini forecast a surprise fall in annual revenue on Friday, citing persistent weakness in its North American market. The Paris-based group said it now expects its organic sales to fall between 0.5% and 1.5% in 2024, compared with the 0-3% rise previously forecast.

“The slope of recovery in the second half will be affected by the recent deterioration of the outlook in the automotive and aerospace sectors and the slower recovery in financial services,” CEO Aiman Ezzat said in a statement.

The company posted a 5.4% year-on-year decline in revenue from the North America region in the first half of the year, slower than the 7.1% fall seen in the first three months of 2024.

The market was the second biggest for the group, accounting for 28% of its revenue in the first half of the year. It was a drag on Capgemini’s results last year as well, amid a tech sector downturn.

CEO Ezzat, however, said in a press call that North America was the region showing the strongest recovery between the first and second quarters.

The group’s total headcount stood at 336,900 at the end of June, down 4% year-on-year. The headcount was 337,200 at the end of March. Capgemini has slowed hiring since 2023, ending the year with 5% fewer resources than it started it with, a first since 2009.

The French group reported H1 revenue of 11.14 billion euros ($12.09 billion), down 2.5% year-on-year on a reported basis.

The group confirmed its 2024 operating margin and organic free cash flow targets. ($1 = 0.9211 euros)