Thread regarding DXC Technology layoffs

The worst part is that in those VR pools there are not just managers, but technical people, senior developers and architects that DXC wants to replace with grads. How comes that CEO and CFO positions are always covered by incompetent id–ts?

So the 500 jobs going in UK&I at moment are these part of the 4500 jobs cuts announced on Earnings call last week or can we expect another round of VRs to come in the UK? This company is very bad at communication to its employees

@4dve+15d0BeMG - Amen ! I am in that boat too !

To whoever said "If you need to cut offer VR theres loads off 55+ years old willing to go." There are alot of us technical people at level 5 , level 6 that are old than 55 and most of us can do more in a 8 hour day then the young cry babies or the offshore folks that always push back and say not my job can in a 40 hour week.

I want a pay increase and I want it now

Yeah @3snb+15d0BeMG our beloved leader lost his temper (or rather the mask slipped) when asked if he didn't care about levels 5-8 (or was it 9?), saying of course he did. Funny how few days later, all those levels in UK deliver are in redundancy pools. Got to tell you I don't feel cared for.

LOL- like a Merry go round yet Again. Lawry dug DXC into the ground so deep that they would never get out, sold his stock and left. nothing has changed. I have been here over 20 years, survived layoffs and worked by but off, 50-60 hour weeks, being on call with no pay, no pay raise fro over 9 years and once again , it is time to cut those middle managers- so they target middle managers that got to be there because DXC hires someone to come in and re organize , refocus on Business accounts and look where it got them. Those you put in place will lose their jobs while Mike and his management team reek the profits, and do not say they will not because they surely will. Technicians will get their raises while the people that interface with the customer every day explaining why SLAs are not met will continue to get screamed out about how c-appy DXC is. Way to go in reorganizing us right into the ground again.

@3jvr
but that's not what happens now, WFRed are people with the technical skills and managers at lower levels who know how their service works, on the other hand, people who have no clue how it works and spent last 3 years on never-ending meetings with no results and newly hired managers are kept with a hope they will be able to lead it, DXC customers will run off asap since they will not get what they pay, ineffectual management layers are still in place and will persist

Its okay to cut the numerous management - duplicate and ineffectual management layers - get them to reapply for their jobs every 12 months ( to keep them sharp and focus - making them deliver what needs delivering ).

The technical people and front facing staff should be kept out of cuts and any managers left should not be made redundant, if there is a need to sack n amount of technical people they should look at retraining these staff in jobs that are being advertised.

On a townhall a couple of weeks ago, Mike Salvino had a good rant against those who say that it's just the same old DXC. Apparently it's now different. He's right, it is different. The cuts are bigger than ever, he's actively taking out roles that are billing to clients and generating great profit for the company. Guess what - this is going to damage the relationships that DXC has with clients. Those clients will reduce the amount of work that they give to DXC. Then there will be more cuts. Mike needs to understands that he's got a business that is already struggling to deliver due to lack of resources, and as he cuts further he'll find that clients become even more unhappy.

Without a shift in direction from 'cut' to 'grow' this company won't last more than 5 years. I thought Mike Salvino was the man to make that change, but it seems I was wrong.

I have not worked in DXC for a few years, but reading that May 29 statement, looks like the top management are still struggling for ideas.

The board are going to suspend dividends to an already dwindling set of investors. Why? To give the board time to work out the true value of that they have. You mean, conclude the dividend is too high in line with the losses being made?

So DXC management conclude they have 'too many people doing the detailed work.' Isn't that a good thing, though - assuming its revenue generating work. The only bad thing would be if it were not co-ordinated and the communication to the client not managed by a single point of contact.

After 7 years of culling, why is there still "unnecessary layers". Who have they been culling if not the management layers?

They are now warning investors that DXC expect to lose another billion this year. Way to go DXC! I am sure that'll attract more investment. Sounds like DXC still have underlying problems which they don't seem able to address or address quickly enough. Now they want to put a freeze on the dividend to lock out any new investors. Although most investment strategists are warning against long term investment too given the DXC turnaorund is taking forever.

A runoff of $2B (jaw-dropping); a revenue loss of $8.8B; and a stock price way below the competition. The effect of all this? It's apparently its 'Sub-optimal customer delivery and weakening customer relationships'. No sh*t Sherlock.

When I talk to DXC clients, from the outside of DXC, they tall me how difficult it is to get DXC to listen and respond. They miss having a single point of contact and don't like having to re-explain the problem every time they contact DXC or be passed around the world. Some would settle for a local service provider. I just advise them to review the value chain at renewal time and judge it against competitive tenders. But often its seems as too much hassle and unlikely to get a business case for an exit plan past the CEO in the current climate.

Exiting from large outsourcing corps seems more common now. Customers (the ones I deal with) are waking up and taking IT back inhouse (well, putting it in the cloud) or plitting their IT framework into specialist niche areas across several suppliers to minimise risk of 'eggs all in one basket'. They feel the large outsourcing companies have become to inflexible and the move to cheap global resource has badly effected the personal one-to-one relationship they had back in the day. They are tired of having to explain everything all over again when they chase up a complaint or incident. Not sure why, even schools have opensource service desk software, why does DXC pass people all over the place and can't give regular updates? It as if DXC have this mantra, wait till they complain and then do something.

I feel sorry for those still stuck there. I know the effect that having the threat of redundancy having over your head has on your well-being and your family and being told you're not meeting anything more than requirements when you are constantly going above and beyond and doing 3 people's jobs. Getting no thanks just makes you feel unappreciated and does affect productivity. That's why I would always suggest that once you get out, all that is lifted and you can focus on helping clients again without all the B**t holding you back.

"We're seeing strong demand in the current environment as a number of customers are looking to enable their employees to work remotely. Our pipeline has increased by $1 billion since the beginning of our fiscal year."

Well why don't we capitalise on the demand and turn than $ 1 billion to $ 4 billion, sell sell customers out there. Need to move away from cut cut and no pay no pay to grow and expand.
Otherwise the CEO, CFO, and the rest of the management are useless, that's how the analyst are viewing it, every quarter the turnover slides the share price does the same, people aren't stupid.

Turnover has to grow this quarter so Mike you have got 11 weeks sales drive so start advertising and selling. How difficult can it be.

If you need to cut offer VR theres loads off 55+ years old willing to go.

Meet the new boss,
same as the old boss,
we don't get fooled again.

No matter what you or I think is wrong with this place and why it's not profitable (enough) or growing (at all) it's perfectly clear what the ceo thinks is the problem... Its those dratted onshore middle earners.

It's not the hopeless leaders of technology stacks and their latest (endless) reorganisation or slides full of buzz words. It's not the same leaders who can't figure out what exactly a customer will want to buy. It's not the fault of the mba's from auditors who couldn't turn around and find their own backside. It's not the fault of the previous ceo and his asset stripping ambitions.

No its those guys and girls who earn just a little more than a teacher.

Just get rid of them and we are all sorted and back to a hundred dollars a share baby!

Argh we don't need anymore new blood in covid sat doing nothing, we need to start selling products, bid bid bid for contracts and offer products to existing customers, if the sales people don't want to do their job they they need the chop.

Top priorities issue the pay rises like yesterday.

Streamline the L8 to L11s

Chop the useless appraisals or if it makes mid managers feel like they are justifying their job then just have a 15minute online meeting and 2 references from feedback

Chop the buildings so costly and not needed

Offer Training and careers

Get rid of mk stinksey consultants saving millions they just everything in a text book costing.

Profits will roll in.....

New blood onshore? That's a new one on me! Even grads are something I've not seen in maybe six plus years, let alone barely minimum wage baldricks. I guess sooner or later those tricky secure accounts need cheapening somehow with people on a two year replacement cycle after they realise there is no progression either titular or financial or recognisable qualifications.

@2doi+15d0BeMG I agree about the appraisal system being largely a box-ticking exercise but all the big companies have something similar and it won't be going anywhere.

There are certainly costs which could be cut. Getting rid of the guys at the top is often cited but fact is companies need a board of directors and even if they were got rid of there are few earning the millions and it wouldn't save that much. Better to trim the middle layers - there are thousands of them earning high salaries.

Cost cutting is only part of any potential turnaround. There's an old adage in business that you cannot cut your way to prosperity and this applies here. DXC also needs to sell products and services that clients want at a price that makes them a profit. As you say, not rocket science but beyond DXC at the moment it seems.

@2nkn+15d0BeMG not just students fella. We're all about employee useless 'Apprentices' now. Imagine a company where 2nd rate grads aren't the bottom of the ladder....

So - what's the headcount of DXC?
Do I calculate correctly 128,500? I suppose it is much much less.

It was already around 123,5K last June... Would DXC hire so many students?

The $5bn loan is probably some hangover from last Mikey's next land grab - the technique of always having chaos from the latest big buy and always using that chaos to both beat up staff and confuse Wall Street.

I guess the buy still might be on the table too but thats a secret always so deep few will know about it.

Or it might just be a hand trophy to show Wall Street how liquid DXC is. Its a safe stock because of the huge piles of cash washing around and debt is super cheap right now. Always the chance the company might buy a distressed asset in the current global firesale.

However, none of that is our worry really.

They certainly won't be using that cash to pay raises for any surviving staff thats for sure.

This Annual Appraisal thing has always been a waste of time as its a tick box that doesnt reward any pay rise. Imagine how many man hours are wasted on that, just gives all the yes managers a buzz but everybody else agrees its a total wast of time and resource.

Could get rid of 2% of the staff just filling out all them forms, chasing feedback, and the costly managers meetings. So thats a first process improvement chop saving USD 1Billion, in return just give a flat 8% pay review to the deserving staff.

Also the Balance sheet is showing 5Billion USD in cash as per the Q4 transcript. Thats going to cost around at least 150Million in interest so why do we need that much cash doing nothing, pay most off it back. Whats the Saleh doing all this time except for miking it on expensive share options, would have thought he would have been chopped by now and replace by a cheaper better exec.

Get rid off the buildings - Covid has proved we dont need them as Remote is the new way forward and we should be leading not behind.

Get rid of alot of 9-11 levels $200 Million.

Tighten up on AT&T as were overpaying them $50M

We've just more than double the companys profit.

Not rocket science all this, the company can be turned around quick if they really want, but seems like its not in the interest of the Execs as they are milking it.

Straight taling Mike comes out and tells the workers that negative people need to get out! lol

8 years of facing redundancy every year?
No pay rises for 8 years?
Only non customer facing people, hmmm im a consultant, and pretty much the only person the client talks to on numerous accounts?
Remove complexity? level 5-8? Im pretty sure being the only point of contact, and having been on call 24/7 for 8 years without 1 day off the rota, then removing me will be adding some complexity??

Maybe its my negative attitude of exeeding every year, over 100% billlable, on-call everyday lol
Come on enough is enough, its a load of BS.
Its all about the short term, Mike wants his bonus, wants to look good.

You have to just laugh this off and dont take anything personal.
Im taking VR, get out with a good deal if you can, if not, go when you can, dont let it mess your head up.

The negativity is from the companies actions.
Some days when i cant login to the vpn, i sit there and wonder...... have i been made redundant? lol that telss you a lot about this place.

Raise? LOL What a loser company. Pay peanuts, you get monkeys.

So it is pretty much game over - "complexity and confusion" is it? The only thing you missed Mike is incompetence from a management structure that is dominated by clueless narcissistic sociopaths; too many to name but we all know who they are. There is nothing that DXC has in it's portfolio that people want to buy and even less it is capable of delivering from the broken offshore 'hub' delivery model!

You will have seen it written here on many other posts - get out as soon as you can! - still don't believe it?

Lol looking at jobs now? It's not IT that's over and why the jobs aren't there... It's caused by something else.

Maybe you could Google it?

The IT industry has had its day. The only real skill needed is how to google.

You're just not needed anymore - an empty jobserve search proves it
Max salary to follow - should never be more than a teacher - say £33K

face it - its over

@1bpj+15d0BeMG absolutely spot on! Bravo

@1bpj+15d0BeMG Well said and spot on. I'm a technical 5-8 and I'm in a pool so have 9 more days of fun fill excitement to see if the dice lands on 1 for me.
I'm not sure what Mike means by front line, but as I used to be the face of DXC for several of my projects and often the only person the customers ever saw or spoke to. Oh well I'm sure it makes sense in the master spreadsheet that now runs DXC.
DXC is only paying lipservice to rewarding levels 1-4, aided by the fact they pay such low wages to start with and they know young people move jobs more, so will happily leave without costing DXC anything in redundancy payments. So they will then just recruit more gullible youngsters with promises that the pay will improve after the "probation" period.

@1cea+15d0BeMG if you think L1-4 do all of the "real work" - you can f****g do mine as well. In fact probably you will have to shortly. Only you will be doing it without a clue of how to do it and you will shortly join the trash heap because the clients won't be impressed when the magic stuff we were doing suddenly evaporates. Just for the record, I manage nobody - I am bottom of a management hierarchy (just like you) and I spend my entire working day on technical work.

What's going on here is classic divide and rule. There is a bogey man, its "middle management". Everything is their fault - apparently.

Actually, what the target for this cr@p is is "onshore middle earners". Its the same thing the previous Mikey was hammering. As well as a management tree and a layers hierarchy there is also a wages hierarchy - that's where they sort everyone's salary into a frequency distribution chart. In the middle is a bulge - its this that they are trying to crush.

In something else, you'd expect to see as the wages increase, the number of people earning them would decrease, forming a perfect pyramid.

However, what these clowns don't understand is that there are two career tracks in DXC. They should understand it, I mean after all its absolutely clear when you look at the layers organisation chart.

One track is technical, the other is managerial. The two overlap in the middle. Guess what this does to a salary distribution chart?

Now you could remove that bulge easily - I mean why do you need more skilled technical people or anyone managing 10-30 people. No, you could just have junior technical people (who you never promote or give a raise to) and people earning over six figures managing 100+ staff.

See I've fixed that for you DXC and without having a MBA.

I should go join PWC, Deloitte, McKinsey or one of the other sh1thounds DXC pays millions to for "strategy". Maybe I will have to after next week.

(Just in case anyone misses the irony, that plan is about as rubbish as you can get and will accelerate DXC into the dustbin - not that I think there are any signs of brakes preventing that now)

DXC is cutting 4500 people and you still believe pay increases are coming?!?!?

I’m laughing so hard my stomach hurts; how can you be so gullible?

Mike cares about people doing the work. That’s why he is focusing on giving L1-L4 increases. The increases have already started. I know... it has been rough for many of us that have been with this company for years. I’m going on 10 years...
I hope I don’t receive backlash for this, but try and stay positive. I like to think he is trying to weed out terrible managers that we have been dealing with for years... this isn’t to say all L5s through L8s have been horrible... I just like to think Mike recognizes that they have been treated to a nice meal or two without even doing any of the work to earn it like us L1-L4s. One can only hope that this is the case.

Like senior managers, optimize what you can get short term. Not a place for a career.

I've heard they are trying to match a similar level to AT&Ts which was average 5.5% plus a 7% bonus. Roughly should be in the region of 8 to 12% in total.

I'll bet most of one to four USA and European staff won't see the rise because after this comes the offshoring.... Which is definitely coming next.

Does anyone know the proportion in scope? e.g. 1:6 ?

@xap+15d0BeMG it's a rubbish situation, but being realistic the only thing that L1-4 are going to be relieved of is their jobs. Hard working people f**ked over by this trash company.

Does anyone know about the promised raises for levels 1 - 4? Is this going to happen in August like MIke S. promised? This workforce has been without a pay raise for many years, the focus has been on all the wrong things? Are levels 1 -4 going to see some relief? If the pay increases happen as they promised, what is the average pay increase going to be?

Looks the same process as Mike Lawrie turniver dropped from 26B to around 16B then he did the merger with HP to bring it back to 25B.

So this will run for a couple of years decline and then Mike S will leave. Unless you see a bug sales drive and improving turnover know that it's on a decline, the analysts aren't stupid.

In the meantime the top management will screw task much as they can whilst telling the staff theres no pay rises - Double standards.

One sure thing customers know how the staff are being so will not give new business if this continues as they know how badly the workers are being treated.

Mike S get a grip and deliver pay as you promised otherwise you will not be taken seriously.

"DXC is looking at cutting $700 million in costs annually, with $550 million set for this fiscal year."

Now there is a new and promising strategy. Not!