Capgemini Divests US Subsidiary Amid Controversy Over ICE Contract

French tech giant Capgemini has announced its decision to divest a US subsidiary linked to a contract with the US Immigration and Customs Enforcement (ICE). This move follows increasing pressure from French lawmakers and public protests against the agency’s actions. The company stated that it would initiate the divestment process immediately.

In a press release issued on Sunday, Capgemini explained that “legal constraints” hindered its ability to oversee the operations of the subsidiary, known as Capgemini Government Solutions. This subsidiary has been under contract since December 2022, providing software designed to detect and locate foreign nationals, according to public records.

The decision to sell the subsidiary, which accounted for just 0.4% of Capgemini’s revenue in the previous year, comes in the wake of significant public outcry. Concerns intensified following the recent fatal shootings of American citizens Renee Nicole Good and Alex Pretti by federal immigration agents in Minneapolis. These incidents have sparked protests and calls for boycotts against businesses associated with ICE.

CEO Aiman Ezzat addressed the controversy on LinkedIn, stating that the company had only recently become aware of the “nature and scope” of the work conducted by its subsidiary. He acknowledged that the contract raised questions about the firm’s typical business operations.

Demonstrations against ICE have escalated both in the United States and internationally, with activists demanding accountability and changes to immigration policies. On February 3, 2023, a coordinated event known as “National Shutdown” urged participants to engage in a 24-hour general strike. Organizers encouraged students to skip school, businesses to close, and consumers to refrain from spending as a protest against the Trump administration’s immigration enforcement measures.

Popular podcaster Scott Galloway joined the call for action, urging Americans to “opt out” of certain services to pressure corporations with ties to the administration. He asserted that small changes in consumer behavior could have a significant ripple effect on policymaking.

Additionally, a petition titled “Tech demands ICE out of our cities” has garnered support from hundreds of tech workers. This initiative calls on industry leaders to directly engage with the White House and advocate for the removal of ICE agents from urban areas.

While Capgemini did not respond immediately to requests for comments regarding the divestiture, the company is recognized as one of France’s largest publicly listed firms, with a market valuation of approximately $26 billion. The divestment reflects a growing trend among companies reassessing their relationships with government agencies amid rising public scrutiny.