German managemnt announced major staff reduction. About 30% nedd to go.
This will never reached with voluntary leaves.
So which locations will be closed?
35 replies (most recent on top)
OK. Here you are: pink slips are send out the next week in Germany.
It was announced now in the German townhall.
Looks like it's going forward.
Or downwards.
Several hundred empoyees will be fired in Germany till end of month.
HR needs to be kept busy.
In October, the company will continue the WFR with termination for operational reasons - closing offices, cut job roles...
I wanted to take part in the actual wfr program as a volunteer, but the company refused.... as usual till the next wfr round....
Mike is sponsoring the EMEA restructuring. But ... only till end of September.
So all actions have to be taken soon.
I'll sit with a beer and watch what is happening, as I have agreed with the company on my compensation paket. :)
OK Boomer
To: @bafe+16oPKjDQ most US and maybe German's too can run circles around the India teams. We know how to figure out a problem if something breaks and don't need detailed scripts / flow charts.
I am so sick of the young kids with certification after certification, but can't debug their way out of a soaking wet paper bag.
I wish I could afford to retire at 40, but can't at 65 and I still do more work than most.
OK Boomer
sounds like written by somebody who knows just to drop an email like:
do the needful at the earliest, thank sir
by somebody who is able to do his/her work only based on exact steps, without any own contribution
my dear friend, I am not from "west world" but based on my many years experience I can write you that one German resource cannot be replaced by 4 resources from India, and do you know why?
here are reasons:
- Germans don't lie to their colleagues
- Germans have a system in work
- Germans know what and how to do their work
- Germans do their work in working hours, there is no music and dance
- Germans are precious
- Germans don't cheat their managers
- Germans don't need a huge number of meetings to do something
and so on
And this is valid for all "west world" people and almost for all "east EU people"
Take it as you wish, howgh
"from someone who knows labor cost sheets, let me tell you that for senior positions in Germany, there is max a FTE ratio from 1:4 / 1:5 vs India, not 1:15"
From the cranky emotion in your post, you sound like a legacy skilled employee in the West (old and bitter?).
Even by your metrics, 4 young, graduate, work thirsty Indian engineers with a few years under their belt are definately worth more than you.
Just accept it - All of you in the West are old toast. Most of you over 40 need to retire - make way for those more able, bettter and willing to go the extra mile to get things done.
No company is going to ignore this economic truth - and you trying to make out that Indians just arn't as good as the you is mindless racism anyway.
Whilst 1:4 is an internal billing rate comparison (still very high), the reality is that the salary rate comparison is really 1:15.
Which DXC German entity's offices will be closed?
Some of Entserve's offices as Boeblingen, Hannover, .... .
But more of DXC Deutschland's offices like Eschborn, Munich, etc will be closed as the staff refused to participate in the voluntary redundancy program.
The offices of Luxoft will remain.
to everyone who uses the anonymity of this ~platform to be disrespectful / jealous with other cultures / regions / peers
from someone who knows labor cost sheets, let me tell you that for senior positions in Germany, there is max a FTE ratio from 1:4 / 1:5 vs India, not 1:15 - ANY time, I'd prefer this single German (or UK, or Swiss or US etc.) FTE than the 4 Indians where I need to employ a babysitter for getting useful (not similar) results. Ratio is even worse with senior mgt positions in India as they know how to treat themselves well. Yes, that's a generic statement, and there are many exceptions to the rule.
It's furthermore an unfortunate fact that there is inequality and there are countries with higher standards of living (and costs) than others. Be happy about this, as I know many colleagues which took the opp. to relocate with their families to benefit from this, which is perfectly fine. Diversity, culture, win-win.
However, better hurry up, most of the basic IT jobs offshore will be replaced with AI over the next years so we're left with the overpaid senior mgmt only.
roughly 15% of the required reductions will be come through voluntary leaves
so 85% need to come with other means
To get back to the initial question, it depends on the number of people taking the package. Closing locations is the only way to achieve the required numbers in this WFR-round in the designated timeframe (by the end of Sept). Thus expect to see locations go that most closely match the required HC, mostly small ones starting with Wuerzburg and Hannover. Unless the current program fails to get at least a few hundret takers, then maybe one of the big locations will be closed instead, most likely Boeblingen...
"German salaries are not that different to rates in other countries, based on job code."
Germany aside, I can assure you that between different countries there is quite a variance in pay rates for the same job - the money DXC pays is entirely linked to the in country job market (well, usually slightly less than the actual market rate).
Obviously everyone has different costs of living in different countries though (just because country XXX gets more euros than me doesn't mean that they have more disposable income), but from a DXC management spreadsheet, they only see the $$$$$$.
Staff work on client sited not allowed by law in germany is a total false statement - we have a lot of dxc employees working on client sites day by day. Also, we can get a work place assignment on client side per contract - very helpful for saving tax especially when you have a company car.
Currently in germany the rule is: work from home, on site work requires a permission from the management.
In germany a wfr program is started in August - volunteer leave and also asking to leave from management side -
Whats the voluntary program and what countries?
By salary cost, no single german employee is worth 15 Indian counterparts.
Its all about googling the answer now anyway.
Just curious, why is it not allowed to work on client sites?
Is working from home allowed?
To the person saying good riddance EMEA and hello UK and profit. Bull. Latest slide deck from management showing clients well down on what DXC at inception. Blue chip and Government UK&I customers were and are deserting DXC. In particular, Govt are insourcing - so not just DXC but Cap and Others losing lucrative Govt accounts. Just a few renewals shoring up the UK business. NCE was a growth region in the last couple of years and that is where the money is, despite a couple of toxic Accounts, one of which is dragging the whole company down which is the principal reason the two regions merged so the accountants could massage the numbers so it doesn't look as bad. As others have said, German clients will not pay German rates for offshore labor. However, German salaries are not that different to rates in other countries, based on job code. Problem you have in Europe ( old NCE ) is like the UK&I - all the skilled labor has gone. Indeed, when DXC was formed, all the key technical staff moved to companies like Proservia so you have to employ them back as contractors at contractor rates.
As for office closures. They cannot close that many German offices due to German laws that mean staff cannot work on client sites. Especially relevant in Munich where several major clients are based. Those staff cannot work on the client site.
Well, of course my hourly rate is significantly higher than an offshore or neatshore rate. I'm getting paid more, but cost of living is higher as well. When being in India, I pay one tenth of what I pay in Germany. And some might call it communism, but I prefer a proper health care to opening a GoFundMe page when my partner gets cancer. So, if you call that overpaid, go ahead.
Little detail: German customers are not willing to pay the same price for offshore resources.
Having said that, thank you for the severance pay. It's really a good deal, will pay off my mortgage and a new job will open up soon.
I'm British but have to say the Germs have quality and efficiency they do the job in less hours so they dont need to doing long hours.
They maybe expensive but you have to give Credit where it's due.
over paid..over unionised... uber c-ap.
good riddance to EMEA region. Will give UK a chance to make profits again and not dragged down by EU poor DXC regions.
Dear @3ypm+16oPKjDQ,
not only Germans are overpaid. ;)
Also India labor rates are regarded as to high. That's why there is a (slow) move to Vietnam started.
Bulgaria is still a bit save, as it is the poorest country in the EU. In case Bosnia or Montenegro will join EU, you will see a move to there.
When management is labor solely as a cost factor, and not also as a factor of difference in the competition, this run for cost minimisation will stay.
@3ypm+16oPKjDQ
Sure all Germans are overpaid.
That's why the German economy is doing well and export is world class.
And the economy of countries with poor labor conditions is in most cases weak.
But part of the story is, that simple tasks are given to cheaper locations. This is at DXC Bulgaria, Poland, India, Vietnam. Nevertheless when giving customer faceing roles in off shore location, there are coming topics with language, culture, and commitment. Also you can not keep prices up when delivering only from those locations.
It does not matter what they drive or what they drink, @4ksf+16oPKjDQ. Are you aware that the car brands you mentioned are also customers of DXC, which happen to invest millions into their in-house IT because of the criticality of their operations? How do you think they will respond to DXC when they find out that our management has sacked those very people (and drive a car of one of their brands, ironically) trying to meet the needs of the customers? It comes to show once more that upper management has no care or passion for IT, only for the money that goes through it.
@3ypm+16oPKjDQ, and lose the trust of the European customers in the process, where many of them also have operations in the Americas. This is not proper response to failing revenue targets. Sacking the executives that make this situation worse, and suspending any management bonuses is a great start.
Yes, 30 hour work week, drinking beer and driving audi, mercedes and bmw days are gone. DXC cannot afford that. Guess the new accenture management is looking at numbers with no partiality with regards to region.
when you consider their benefits, all Germans are vastly overpaid.
Significant WFR in the European mainland is way overdue
Hannover
Wuerzburg
Hamburg
Munich
Eschborn
For sure there are some healthy accounts. But also some very unhealthy ones. Even after Mike S. claimed to have fixed all deals, some of the accounts still are loosing massively money every month.
But: getting rid of staff will not fix bad contracts.
How many accounts does the company have in this expensive region ? The management is looking to do the right thing. There are some healthy accounts, and have seen hiring happening in those accounts. So guys smell the coffee and move on.
workscouncil kaput then 😅😅😅😅😅😅😅
The story continues more WFR and more invaluable expertise lost = weaken service left after another WFR reduction.
Hope they close Böblingen!
Keep cool. Management has only announced a voluntary program, which is even better than the last one! Nobody is talking about office closures.
For sure those are on there radar which are only serving one account.