Capgemini moves to sell its US government services unit after controversy surrounding an ICE tracking contract.
Capgemini, the French technology and consulting company, has confirmed plans to sell its United States government services unit following growing controversy around its work with Immigration and Customs Enforcement. The decision comes after strong political and public criticism linked to the subsidiary’s role in immigration enforcement activities.
The unit, known as Capgemini Government Solutions, has been providing services to ICE under a contract signed in December. That agreement focused on skip tracing services, which are used to locate individuals whose whereabouts are unknown during enforcement and removal operations. The contract was valued at more than $4.8 million and was scheduled to run until mid-March.
Political Pressure Drives Decision
Pressure intensified after two fatal incidents involving US immigration agents in Minneapolis earlier this year. Following these events, French lawmakers demanded greater transparency around Capgemini’s relationship with ICE. France’s economy minister publicly urged the company to clarify its involvement and reassess the contract if needed.
As scrutiny increased, Capgemini announced that it would begin the process of selling its US subsidiary immediately. While the company did not directly state that the ICE contract was the sole reason for the sale, the timing clearly reflects the growing controversy.
Capgemini Responds to Oversight Concerns
In an official statement, Capgemini explained that strict US legal requirements surrounding classified government contracts limited the company’s ability to fully oversee the subsidiary’s activities. According to the firm, these constraints prevented proper alignment with its broader corporate values and governance standards.
The company emphasized that the US government unit represents a very small portion of its overall business. Capgemini Government Solutions accounts for around 0.4 percent of expected 2025 revenue and less than 2 percent of Capgemini’s total US turnover.
NGO Report Sparks Public Reaction
The issue gained wider attention after a French nonprofit organization revealed that Capgemini’s US unit supplied tools used by ICE to identify and track foreign nationals. The group alleged that the subsidiary played a central role in enforcement efforts and suggested that compensation could be linked to the number of individuals located and deported. These claims fueled public concern and raised ethical questions about the role of private technology firms in immigration enforcement. The story quickly gained traction across media platforms and political circles in France.
Leadership Addresses Internal Awareness
Capgemini Chief Executive Aiman Ezzat stated that company leadership became aware of the ICE contract through publicly available information rather than internal reporting. He acknowledged the seriousness of the situation and stressed the importance of transparency and accountability moving forward. The company has not commented on whether similar contracts exist elsewhere, but officials indicated that internal reviews of compliance and oversight processes are ongoing.
Broader Company Context
Capgemini is listed on France’s CAC 40 index and operates in nearly 50 countries. The company employs more than 340,000 people worldwide and provides consulting, technology, and digital transformation services to both private and public sector clients.
Earlier this year, Capgemini also announced plans to reduce its workforce in France by up to 2,400 roles through voluntary departures and internal restructuring. The sale of its US government subsidiary marks another significant shift in the company’s strategy as it navigates regulatory, ethical, and reputational challenges. As the sale process moves forward, industry observers will closely watch how Capgemini reshapes its government contracting approach and responds to increasing demands for corporate responsibility in the technology sector.
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