Thread regarding DXC Technology layoffs

Yes a couple of acquisitions might have made more sense - at least you are buying revenue like that...

Wonder what the under performing $500m sell off is going to be... some lucky souls going to work for someone else.

That's another half a billion in the bank too.

One thing worth mentioning, being seen as "cheap" share price wise and having a big pile of cash sitting around is a good way to attract activist investors like flies who want to sell the company off...

an example of what could have been done with the $1B is the EY announcement late last year of what they are doing with ServiceNow

https://www.ey.com/en_gl/news/2021/12/ey-announced-the-expansion-of-strategic-alliance-with-servicenow-to-transform-finance-and-tax-services-for-the-digital-economy

Given all the noise DXC has made about ServiceNow and Platform X something similar could have been done using some or all of the $1B

no strategy no investment no innovation no plan to even buy innovation from elsewhere through acquisitions with the $1B, just retire shares to prop up the share price, worst kind of example of senior leadership with no idea or plans what to do next

Share buybacks are simply lost money.

Short term share price gain, artificial eps growth and that triggers... Executive payout... In shares!

Crazy.

You have to wonder quite how little strategy the leadership is capable of if this is the best form of "growth" they can achieve for 1$bn and consequently what they are being paid so much for...

Maybe paying down some of the debt might be a slightly better idea...

Another set of spin, Mike and Ken are good at this, and the analyst seem like they are bought in, no challenging questions as usual. I can ask much better questions than them.

Organic growth still shrinking after 2.5 years, revenues down, book to bill above 1 but remember last quarter they said some deals had slipped into the next quarter so some of this is from the previous quarter.

Share buy back of $1 billion that's 13% of the company, if you include this years purchases they have cancelled nearly 20% of the company shares. All this to boost the share, why? Because Mike, Mary, vinod, and Co are paid $26 million in shares, so if they can double the share price they will get $52 million.

As usual nothing for the staff, no mention of inflation pay or help.

Just self focused and declines.

Post ID: @1vqz+1f6f4fPv

Exclude the one off disposal in this quarter last year and there has been a big improvement. DXC was in a nosedive & is just about levelling out

The natural decline will continue due to lack of strategic choices, reckless hiring, and failure to change in a fast-changing market.
In the past two years, DXC has been saying what they hope the outcome will be (seize the market, take care of people, etc.). There's nothing wrong with this, but that's not a strategy. A strategy is a clear set of choices; what is DXC going to do, and what is it not going to do. DXC doesn't communicate this, so nothing meaningful happens, and so the ship is steering carelessly on a very rocky sea with bigger boats and captains actually know where they're going.
I'm now seeing more and more managers, VPs, and presidents being onboarded into the company than ever before. This selection and promotion should happen from inside the company by employees and not management, because it is those who know the company and its teams very well, and whom have been there for a long time, are the ones that could turn the decline around. Not the expensive people from the outside who have no idea of the company's history and how it works internally. Before they've been brought up to speed, a whole year has passed a lot of money has been wasted.
Last, as part of the decline, the leadership team seems not willing to make radical changes in a fast-changing market. It holds on to a perpetually declining business model where customers are slowly moving away from. Unwilling to try and invest in new ventures, take on unfamiliar or difficult projects, and the inability to deliver tailored solutions to customers that ask for them. Customers realize this and thus will respond to DXC accordingly.

and the shrinking keeps on going, another $200M compared to same quarter a year ago (and its a long time favorite - "currency headwinds" to blame)

Spectacular reduction in net income (ie profit), reduced by $1B from Q3 last year

and for good measure they have updated their guidance for the full year by reducing revenue forecast by $200M ... but don't worry they have "reaffirmed" the 1-3% growth forecast in 2024 !!!

In a parallel universe, Mikey2 manages to say "Our focus on operational execution drove continued improvement in revenue, margins ...". Just as well they were so focused, as otherwise they would have lost a lot more than $200M in revenue and $1B in net income

If you are familiar with Berkshire’s Annual Meetings, you probably already have come through the maxim of Charlie Munger “I think that, every time you see the word EBITDA, you should substitute the words bu-----t earnings”