European Tech Giant Cuts Off U.S. Subsidiary After Multimillion Dollar ICE Contract

European Tech Giant Cuts Off U.S. Subsidiary After Multimillion Dollar ICE Contract

Capgemini Cuts Ties with U.S. Subsidiary Amid ICE Backlash and Rising Franco-American Tensions

In a dramatic pivot that underscores the deepening fault lines between Europe and the Trump-era United States, French multinational Capgemini has announced its immediate divestment from its American subsidiary, Capgemini Government Solutions. The move comes in the wake of intense public scrutiny over the company’s involvement in a controversial new Immigration and Customs Enforcement (ICE) surveillance initiative, as well as mounting geopolitical pressures that have pushed French officials and citizens to reassess their ties with American corporations.

The Controversial ICE Contract

The controversy centers on Capgemini Government Solutions’ designation as the lead contractor for a newly expanded ICE “skip-tracing” program—a method historically employed by debt collectors to locate individuals who are difficult to track down. Unlike previous ICE operations, this initiative marks a significant escalation in the agency’s surveillance capabilities, tasking private contractors with identifying and physically surveilling up to 50,000 immigrants per month.

Under the contract, awarded in December, Capgemini and nine other companies were enlisted to scour “all technology systems available” to pinpoint the locations of targeted individuals. The program goes beyond digital surveillance, requiring “physical, in-person surveillance,” including photographing subjects. The financial stakes are enormous: ICE’s contracts with these firms could collectively exceed $1 billion by the end of next year, with Capgemini Government Solutions positioned to receive up to $365 million over two years—the largest share of any contractor.

Capgemini Government Solutions has maintained a working relationship with the U.S. Department of Homeland Security for over 15 years, according to Capgemini CEO Aiman Ezzat. However, the nature of this latest contract has ignited fierce debate about the ethical boundaries of corporate involvement in immigration enforcement.

Public Outcry and Corporate Accountability

The backlash against Capgemini’s role in the ICE program is part of a broader wave of resistance to the Trump administration’s hardline immigration policies. Across the United States, anti-ICE protesters have organized nationwide general strikes and boycotts targeting companies complicit in the administration’s crackdown. Hundreds of tech workers have signed open letters demanding that their employers sever all ties with ICE, reflecting a growing movement within the industry to hold corporations accountable for their role in state violence.

The protests have transcended national borders. In Italy, demonstrators have taken to the streets as ICE agents prepare to deploy to Milan for the Winter Olympics, while in France, the fatal shootings of Renee Good and Alex Pretti by ICE agents in Minneapolis last month galvanized public opinion and intensified scrutiny of Capgemini’s contracts with the U.S. government.

French unions, government officials, and even Economy Minister Roland Lescure called on Capgemini to review its American partnerships. In response, the company convened an independent board of directors to assess the ethical and operational implications of its involvement in the ICE program.

Capgemini’s Decision: A Corporate Reckoning

In a LinkedIn post last Sunday, Ezzat acknowledged the growing unease surrounding the contract. “We were recently made aware, through public sources, of the nature of a contract awarded to CGS by DHS’ Immigration and Customs Enforcement in December 2025,” he wrote. “The nature and scope of this work has raised questions compared to what we typically do as a business and technology firm.”

A week later, the board’s review concluded that “the customary legal restrictions imposed for contracting with federal government entities carrying out classified activities in the United States did not allow the Group to exercise appropriate control over certain aspects of the operations of this subsidiary to ensure alignment with the Group’s objectives.” In a press release, Capgemini announced its decision to divest from Capgemini Government Solutions, framing the move as a necessary step to preserve the company’s ethical standards and operational integrity.

The divestment is not merely a corporate governance issue; it is a symbolic rupture in the transatlantic business relationship. Capgemini’s decision reflects a broader European reassessment of its economic and political ties to the United States under the Trump administration, particularly as tensions over trade, technology, and human rights continue to escalate.

The Broader Geopolitical Context

Capgemini’s divestment arrives against the backdrop of a rapidly deteriorating relationship between France and the United States. Since President Trump’s return to office, European resentment has simmered over a series of provocative actions, from threats of sweeping tariffs on European goods to the administration’s cozy relationship with tech moguls like Elon Musk.

In France, the backlash has manifested in tangible ways. Early last year, citizens organized boycotts of American brands, including Tesla, Coca-Cola, and McDonald’s, in protest of Musk’s influence within the Trump administration. More recently, French officials have moved to restrict the use of American technology in government spaces, seeking to reduce the country’s dependence on U.S. digital infrastructure.

The French government has also called on the European Union to adopt a more aggressive stance against Trump’s trade policies, urging the bloc to deploy its “trade bazooka”—a suite of retaliatory measures that could include restrictions on digital services companies like Meta and Google. Capgemini’s divestment can be read as part of this broader strategy to assert European autonomy in the face of American overreach.

Implications for the Tech Industry

Capgemini’s decision sends a powerful message to the global tech industry: the era of unquestioned complicity with state surveillance and immigration enforcement may be coming to an end. As public pressure mounts and geopolitical tensions rise, companies are being forced to reckon with the ethical implications of their government contracts.

For tech workers, the move is a vindication of their organizing efforts. The open letters, protests, and boycotts that have swept the industry in recent months have demonstrated the power of collective action to shape corporate behavior. Capgemini’s divestment suggests that, at least in some cases, companies are willing to prioritize ethical considerations over lucrative government contracts.

However, the decision also raises questions about the future of public-private partnerships in the realm of national security and immigration enforcement. If other European companies follow Capgemini’s lead, it could signal a significant shift in the landscape of government contracting, with potential implications for the effectiveness and scope of programs like ICE’s skip-tracing initiative.

A Watershed Moment

Capgemini’s divestment from its U.S. subsidiary is more than a corporate maneuver; it is a watershed moment in the evolving relationship between Europe and the United States. It reflects the growing willingness of European companies to challenge American power, even at the cost of significant financial and strategic losses.

As the Trump administration continues to push the boundaries of executive authority and corporate complicity, the pressure on companies to take a stand will only intensify. Capgemini’s decision may well be the first of many such ruptures, as the global tech industry grapples with the ethical and geopolitical implications of its work.

In the end, the story of Capgemini’s divestment is not just about one company’s response to a controversial contract. It is about the broader struggle to define the boundaries of corporate responsibility in an era of rising authoritarianism and deepening global divisions. As the world watches, the question remains: how many more companies will follow Capgemini’s lead, and what will the consequences be for the future of international business and governance?


Tags: Capgemini, ICE, skip-tracing, immigration enforcement, Trump administration, French tech, corporate divestment, government contracts, tech industry ethics, anti-ICE protests, European-American relations, trade tensions, tech worker activism, surveillance programs, geopolitical tensions

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