It’s going from very bad to even worse. Investors are dropping out of DXC by the bus load and as a result the rumor is that new CEO has no choice and has to eliminate expenses more than expected. That means employees. The death spiral continues.
Market cap is so low as compared to a year ago you just have to scratch your head and wonder what the heck happened?
11 replies (most recent on top)
@11Alsr4C-4zkc at the moment Sal's line is that employees are the company's most important asset, that they need to be nurtured and rewarded to improve quality, which in turn makes the clients happy, which in turn delivers new profitability to DXC.
I think most of us agree this is a nice sounding strategy.
Its ~30 days now and other than a world tour, we've not seen anything solid yet... not even a new set of "values" or a new slogan, let alone firm plans.
What I also have heard him say is that the FY20 plan (that until April 2020) is still in place and will not be dropped - so any WFR already lined up by Mikey will be executed.
I guess the new stuff comes in April - for anybody left.
DXC under old mikey was fixated with maintaining and boosting shareholder value over WFR and cutting level of service down to the bare minimum
Unsure what the %^%^%^ new Mikey is doing to try to turn the ship around - time is running out
Don't get why @2psw got so many downvotes. That person is 100% correct: fixation on stock price is totally unhealthy for any company; it's a toxic measure that treats "shareholder value" as the gold standard, not customer satisfaction. Companies that fixate on shareholder value inevitably tank because stock price is an instantaneous measure that can be manipulated in the short term, at the cost of the long term.
Look at IBM.
80% of large scale mergers fail. Regardless of intentions it's only a matter of time now. They may have impressive revenue numbers but DXC can not pay its bills. More cuts coming... Company provided vehicles and mobile phones are on the chopping block. Management have made plenty of stupid decisions in the past. Do you think they're any better now?
Who cares what the stock price is? We should be doing everything to support the clients and make money. The stock market will come around once we start producing. We need internal digital transformation
What happened? Simple - DXC missed their numbers, which is a big no-no in modern corporate life.
Why has it happened? @2kjo has pretty much nailed the reasons in his post.
There's an old adage in business - 'you cannot cut your way to prosperity'. DXC will be a future case study of a company which tried this and failed.
@11Alsr4C-1wdc This person gets it. We have way too many managers and management layers in this company. The organisation has to become flatter. When I wanted to do something new on a big account, I had more managers barraging me with questions than the client did, who had approved it months ago.
What Happened ?
HPES/CSC cut sales people until they couldn't sell
HPES/CSC cut engineering people until they couldn't design or build.
HPES/CSC cut delivery people until they couldn't deploy
HPES/CSC cut operations people until they couldn't support.
Then they 'merged' the companies...taking the profitable bits off, and leaving 'DXC' as the franken-monster...
DXC cut sales people more to make the numbers look better...
DXC cut engineering people more to make the numbers look better...
DXC cut delivery people more to make the numbers look better...
DXC cut operations people more to make the numbers look better...
DXC bought a few companies along the way, to prop up revenues...while continuing to cut cut cut.
And for a while it worked. The acquisitions and cost savings hid the lack of sales, the lack of new product engineering, , the inability to deliver and the failing support, all of which was costing us clients and revenues. But then we started losing the big accounts, the cash cows...
Eventually...the ball could no longer be hidden under the cup, and the multi-year shell game finally caught up with the CxOs. The only thing left now is to wring every last penny out of the carcass before it gets tossed onto the waste pile.
More layoffs aren't really going to do much...the damage is already done. The investors know there is little upside left...they might ride a couple small bumps as the death throes twitch the corpse...but the stock price really tells you everything you need to know.
@11Alsr4C-1wdc - agree was bad at CSC but experiencing DXC for few months was going down the pan, fortunately got out of the %%^^%%^ hole.
New Mikey needs to act fast and get rid of the leaches / ten a penny managers from this company, otherwise be too late to save the company
e client
Plus all this fighting for resources and getting us nowhere. Change management is a joke. It takes longer to go though the change manage process than to make the actual change, waste of resources!
Get rid of two in a box management. Your functional manager should be your only manager. This will cut management in half and save big dollars.
Maybe if managers would actually meet with their employees rather then sending emails that just cause more questions , we might make some progress with helping the client
Plus all this fighting for resources and getting us nowhere. Hange management is a joke. It takes longer to go though the change manage process than to make the actual change, waste of resources!