CAP Gemini Ernst & Young, the information technology services group, yesterday added to the gloom in the technology sector by cutting its earnings forecast and announcing it was dismissing 2,700 employees. The company cut six jobs in its Irish operations last month.

The cuts will affect 4 per cent of the workforce and will lead to a one-time charge of #85m, which will be booked in the first half. Cap Gemini shares plunged 23 per cent to #85.2, their lowest level since early 1998.