Thread regarding DXC Technology layoffs

Both csc and hpes picked up business by virtue of their financial capability. The ability to execute big complex projects that the client pays nothing for until go live. You need deep pockets for that, it's the main reason you always saw the same names on all of the big things.

Just how good either was at doing that was irrelevant... Or any of the other big competitors.

The need for fronting vast capital for clients has largely gone though.

Now dxc is competing with a much bigger market and some of them are more capable and cheaper. Financial power isn't a differentiator any more, its no longer a closed shop.

The only thing that this companies predecessor's had were its people. Not technology. It was the visionary thinking that its lead strategists had then working with its technologists to combine products into composite solutions from various strategic and niche partners and then take these to the market and big business to deliver value to clients. This has all been lost . Bionix as an automation platform was a good idea. But many major technology service providers had automation . The engine behind Bionix , leverage AI and build Platform DXC , a bunch of bespoke scripts to drive down costs using cheap far east labor and cheap graduates in low paid areas in Western countries. Cheap as no commercial licensing , expensive though as you have to maintain the code for years to come for each client you develop the micro code for. Combine this with a Service Platform - SNOW. Not rocket science. Problem they have is that all the skills DXC had have gone. Redundancies. The thought leaders are now working for other companies. Delivery capability is now worse than pre DXC. Just ask the clients that have parted ship or the existing clients who are renegotiating contracts.

• Not all suffering accounts were improved. There are still some accounts with significant losses per year.
• Internal processes not working well. Sending invoices to customer for service requests 13 month after approval. Processing of service requests moved to unexperienced staff, which produces massive delays (rerouting of requests, low work ethics, ...) . Projects with massive delays.

What is in for the balance sheet?

• cost for office space will drop in FY21 Q4 and FY22 Q1-3 as the space will drastically be reduced where contracts with landlords allow that
• RCOW is in focus now again -> layoffs, might be relevant in Q4 and Q1FY21
• drop of revenue will continue, as no new big deals were signed
• abitration with Perspecta was expected to be closed in Nov 20. Yet nothing in the SEC files. Still a risk of 900 m, even the odds are unclear whether this materializes.
• chances for additional revenue due to pandemic for work from home not easy to use, as relevant staff was reduced
• high exposition in industrial sectors with pandemic impact e.g. airline industry will lead to margin pressure and reduced revenue

There so many management layers been added it's hard to keep up, you end up with 5 bosses with different titles. Strange way of running a company when there are so many overhead layers duplicated and each manager sending out the same emails to justify their positions. How many managers can one person answer to?

Why dont they remove it to 1 or 2 managers and replace the others with email forward bots. Much slicker faster, efficient, and better for the customers.

@oxs+18H9Sjxi - Sal can change things around if he does drastic changes asap like- reduce management middle layers, simplify processes across the board and remaining staff on the ground - invest in them going forward

There are no plans for actual investment. The singular focus is on getting the overall profit margins in line with the rest of the industry. This will be done with drastic short terms cuts that may improve the numbers in the short term, but it will have a serious detrimental financial effect in a couple quarters.

The goal for this month is to practically eliminate the Offering organization. The target is to cut 60 positions by the end of the month. This group was the group that determined where to invest. This will put an end to that analysis and research.

In relation to the last comment, it needs to be said that DXC never made it a secret that the mounting pressure they have put on employees (at least here in Europe) to leave the company was NOT a COVID-19 related issue. Hence, they got away with other measures to reduce costs, i.e. reducing working hours (while at the same time having utilisation of 98% in some countries).

Anyone who attempts to defend these nonsensical layoffs, or quite frankly the lack of commitment to implement meaningful changes in a fast pace, by saying, "It's the global pandemic" must be blind on both eyes or a newbie. It has always been a deliberate decision to make deconstructive actions at the expense of employees.

As the first comment on this thread, DXC wasn't conceived as a working IT company, it was conceived as a financial vehicle, a temporary warehouse for a fire sale. Mikey even bought more stock to flip and added it to the pile.

I'll be honest when I say that I don't know if this is Salvino's game too. I think its probably not, but he's got a mountain to climb because he's got to turn a dumpster fire into a genuine operation and do it quickly.

However, its not happening quickly.

I'd score him 8 out 10 for ambition and 2 out of 10 for capability.

I'm not even letting him have some slack for covid-19 because by and large that's not impacted DXC in any meaningful way.

They are not even submitting realistic bids now - we definately get the impression that DXC do not want to keep existing business in the UK.

Reading this forum has been an eye-opener for me and probably quite a other few clients too.

"When will the investment begin?"

For me the question is: When will the divestments end?
Layoffs will continue. RCOW is in focus now. Sell of parts will come again, for sure, to improve the balance sheet.

This company was never meant to have a future as a technology company, it was always planned to be an interim vecical to make money with fincial engineering. Lawrie tried several times to split and sell parts, some worked out (Perspecta, ...), most of them not (complete delivery, ... and now workplace and BPS).
That's why there is an interim design, interim proceses, interim sales, and no invest in real products, only in slideware.