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CGI is hiring less while its employees are more loyal to it



(Montreal) After being in seduction mode in a tight job market, CGI is posting fewer new positions, while its employees are more loyal to it.

“We have reduced the number of job offers, just a bit,” confirmed CGI President and CEO George D. Schindler on Wednesday during a conference to discuss its quarterly results. The reason is that the turnover rate is decreasing a little bit. Our turnover rate […] started to decrease and we believe it has reached a ceiling. »

Last year was marked by a tight job market in the technology sector. Signs of a slowdown are visible, however, as Canadian start-ups, such as Goodfood and Wealthsimple, have announced layoffs this year. The phenomenon is also evident in the United States, as demonstrated on Wednesday morning by the decision of Meta, the parent company of Facebook, to cut 11,000 jobs, or 13% of its workforce.

In the case of CGI, the decrease in the number of job postings is not a signal of a slowdown in the company’s projects, insisted Mr. Schindler. The executive reiterated that fewer employees were leaving the company, which reduced the number of candidates to be found for a replacement.

The number of job postings worldwide by CGI for the months of July, August and September fell 4% from the previous quarter, according to a review by RBC Capital Markets, published in early October. This number is still 9% higher than the comparable period last year.

The decline is more pronounced domestically, again according to RBC Capital Markets. The number of Canadian positions posted on CGI’s website was down 23% from the previous quarter and 29% from a year ago.

Results up

For its fourth quarter ended Sept. 30, CGI posted net income of $362.4 million, up 4.7% from the same date last year.

Excluding specific items, the net profit of the Montreal company amounted to 373.1 million, up 7.6% in one year. During the same period, earnings per share rose 8.6% to $1.51.

For the full fiscal year 2022, CGI took in revenue of $12.87 billion, up 6.1%, or 10.5% in constant currency, from a year ago. Net profit increased by 7.1% to 1.47 billion.

The stock gained 36 cents Wednesday morning, or 0.33%, to trade at $108.67 on the Toronto Stock Exchange.

Company in this story: (TSX: GIB. A)

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