Princess Cruises, based in Santa Clarita, will lay off 350 IT workers in February as part of its parent company, Carnival, eliminating its entire IT division, a source close to the situation told the Gazette.
“As has been announced, Carnival Corporation’s Global Infrastructure Services division has elected to outsource a number of functions currently supported by GIS,” a notice of layoff obtained by the Gazette begins. “This memo is to notify you that, as a result of the outsource decision, your position with Princess Cruise Lines, Ltd. has been eliminated, and your last day of work for the Company will be February 4, 2017.”
The memo goes on to say the GIS division will be outsourced to Burbank-based Capgemini Consulting, and these employees will have the opportunity to be temporarily hired there provided they accept Capgemini’s employment offer by Dec. 19. A final decision on permanent employment would be made around Aug. 5 after Capgemini “conduct(s) a knowledge transfer process … and will determine the resource levels required to provide services thereafter.”
According to the source, the reason for the massive layoffs is because the people responsible for integrating Princess’ systems into Carnival’s following the two’s merger in 2003 failed, and the employees that tried to fix the problems are being held responsible while the management keeps its jobs.
Princess officials did not return a call seeking comment.
Lee received the following from Princess Cruise officials
Your story about our transitioning IT employees to Capgemini needs a correction.
The number of employees from Santa Clarita impacted by this change in employment is 61 not 350. We don’t have 350 people in our IT department here.
Also, your source has inaccurately characterized what lead to the business decision so I’ll ask you to review this based on the additional background I provide below.
According to the source, the reason for the massive layoffs is because the people responsible for integrating Princess’ systems into Carnival’s following the two’s merger in 2003 failed, and the employees that tried to fix the problems are being held responsible while the management keeps its jobs
There was no initiative back in 2003 to integrate IT systems. Our Global Infrastructure Services (GIS) group was formed in July 2013 and the integration of infrastructure didn’t begin until 2014. It was expected that the integration of infrastructure and systems would be fully operational by 2015 but that did not happen because of the complexity associated with trying to merge IT solutions, team resources and functions from three locations (Santa Clarita, Seattle and Miami). What was discovered as a result, which happens with large companies of our size, is that we needed professional management to operate our infrastructure services in a uniform manner and there are companies, like Capgemini, who are more qualified at doing so than us.