Sell off , contract renewals, due diligence and end results

I put the following notion to it all, that DXC needs to quickly complete the sell off to avoid a future drop in share price, just like Atos.

There must be a significant number of DXC customers with support contracts up for renewal. If this rumoured sale doesn't complete in the next 12 months. DXC will likely be in an even weaker situation than it is now.

Contracts will either be lost to competitors with a more predictable future, or agreed to be kept with DXC at ludicrously low profitability and a short term.
There is nothing good for DXC here - For both share holders and employees.

This is the end scene I see - The ending in the film titanic - we are ones holding on to that handrail, watching the sea get closer as the good ship dives under the waves

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@1zza+1t0sdT9d to be fair (and I'm not usually when it comes to DXC) the revenue drop is only partly caused by the customer exits and no new deals.

A lot of it will be because of the various sell offs over the years.... healthcare, USPS etc...

Thats huge chunks of revenue flushed for cash.

If anyone thinks Kyndryl buying DXC will fix it either... well you are very wrong.

Its going to be customer runoff, revenue runoff, massive multi-year restructuring costs and ultimately no profit for Kyndryl (well, they don't make a profit at the moment either).

It will be as bad if not worse than the CSC/HPES collision.

I predict they will axe at least 60,000 people in that process too.

We are still waiting for the DXC board to announce formally of the approach and offer.... if it happens at all. Then the board will recommend or not the offer to the shareholders for a vote.

Unless the offer is a high percentage of cash (as opposed to shares in Kyndryl) the shareholders won't accept it. Its as clear to them as it is to me that process (outlined above) is going to be messy with no good outcomes. Why would you want shares in Kyndryl even now, let alone with the prospect of what is to come?

Its like taking a dumpster fire and chucking it into another burning dumpster.

From an employee POV the only good thing would be a chance to get the WFR payout many have been waiting for... definitely don't expect any different if you hang on because Kyndryl are also mad players of labour arbitrage.

We've all accepted our fate, we're now in it for the redundancy monday. Those with any sense fled long back the rest should have behaved like DXC and do everything on a tight budget. So when this deck does hit the water, 10 years of saving like this year will be our last is the life raft you need. What we do after that is less clear. A couple of years of counselling will probably be necessary.

The history of acquisitions by L-HP is one long series of complete disasters. On top, the merge of L-CSC and L-HP was designed to fail as the DNA of both organizations is simply not compatible. 7 years without 1 usd revenue growth paves a solid road to chapter 11 or bankruptcy. Right? From a 26bln usd company to barely 13bln usd, from approx 100 usd per share to 18 usd per share, from 170k employees to 80k employees, etc What is the problem that these senior execs and armies of middle managers can not solve? Or are they not fit for the job?

Drummer Goliath, Holiness Finchy, Robert Del Niro and Mcdaddy Brandy are milking it till the end.

Rubbish company proposes to buy very rubbish company. Guess what it looks like in 2 years?

Thread regarding DXC Technology layoffs

Sell off , contract renewals, due diligence and end results

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