CGI to Cut 1,600 Jobs, Reshaping Workforce in Online Push

  • Technology-service provider still boosting overall headcount
  • Clients want to spend more on applications, automation: CGI
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Canadian technology-service provider CGI Group Inc. said it’s cutting 1,600 jobs while hiring in other areas as it responds to clients’ accelerating demands to provide more online services.

The Montreal-based company will post a pretax expense of C$165 million ($131 million) over the next year to account for the job cuts and “address underutilized resources,” Chief Financial Officer François Boulanger told analysts on a conference call Wednesday. The stock had its biggest intraday drop since December.