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(Reuters) – Capgemini said on Tuesday it expects weaker revenue growth in 2023, with the IT consultancy pointing to slowing demand for its cloud, data and artificial intelligence services in an uncertain macroeconomic environment.
The French group, which offers consulting, digital and engineering services, expects revenue growth of between 4% and 7% at constant exchange rates this year, compared to 16.6% in 2022.
The group’s turnover reached 22 billion euros in 2022, while its order intake amounted to 23.7 billion euros, an increase of 16.8% at constant exchange rates.
“Despite a more tense economic context, we ended the year on a good momentum and are therefore starting 2023 on a good footing,” Chief Executive Aiman Ezzat said in a statement.
The Capgemini title fell by 0.64% at 08:49 GMT on the Paris Stock Exchange.
Capgemini also said it had increased its workforce by 11% year-on-year, reaching a total of 359,600 people at the end of December.
The increase in the workforce comes as slowing growth, inflation and the threat of a recession have pushed companies in the sector, including American giants Alphabet, Microsoft and Amazon, to cut jobs.
The Paris-based company also forecasts for 2023 an operating margin of between 13.0% and 13.2%, and an organic free cash flow generation of around 1.8 billion euros.
(Report Lina Golovnya in Gdansk; Augustin Turpin, edited by Kate Entringer)
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