Thread regarding DXC Technology layoffs

DXC said it can repay the borrowed funds at any time without penalty. Of course it can, that is the law in the US.

I heard America’s pay raises are suspended, did you really think there were going to be any? If so your a fool!

Sal has just hired another one of his cronies. This guy is worse than Lawrie. We’ll see full year results shortly, I know it is very very bad, have seen draft already. Let’s see what excuses Sal makes!!!! He is a total loser, talks a good game but has no idea what he is doing! If you own DXC stock and want to protect what little value is left, SELL now!!!! Don’t say you have not been warned!

I heard America’s pay raises are suspended. Anybody else here this? I haven’t heard a whiff about the already late review process that is to culminate in raises, promotions and bonuses. And they don’t even have the guts to be honest. I couldn’t believe they could get scummier, but they did.

It's ok layoffs will always make investors more happy. So let the implosions being.

https://www.bizjournals.com/washington/news/2020/04/02/two-of-the-regions-largest-companies-have-borrowed.html

Two of Greater Washington’s largest public companies are borrowing huge sums of money to keep cash on hand as they weather the impacts of the novel coronavirus pandemic.

DXC Technology Co. (NYSE: DXC) said Wednesday it is borrowing an additional $2.5 billion from an existing credit facility on top of the $1.5 billion it said it was taking out on March 24. The Tysons IT services giant said it chose to borrow a total of $4 billion — the largest amount available under the credit agreement — “as a precautionary measure” to increase its cash holdings and financial flexibility in the face of the market uncertainty related to the outbreak. DXC said it can repay the borrowed funds at any time without penalty.

The company’s share price has fallen 61.4% during the last two months, from $32.17 to $12.41.

DXC is currently in the process of selling its state and local health business to private equity firm Veritas Capital for $5 billion in cash. That deal is supposed to close before the end of 2020.

Herndon’s Beacon Roofing Supply Inc. (NASDAQ: BECN), a massive North American distributor of building supplies, said late Wednesday it is borrowing $725 million from an existing credit facility as “a proactive measure” to increase its cash and flexibility in response to market conditions related to the coronavirus.

Beacon said it still has about $185 million of additional borrowing capacity if it needs it.

“Even though our business has been deemed essential everywhere we operate and we remain open to serve our customers in all 50 states and Canada, we thought it prudent to have additional cash on hand in the event that we experience a material downturn in overall business operations as a result of the COVID-19 pandemic,” Beacon President and CEO Julian Francis said in a statement.

Beacon’s share price has fallen 53.7% in the last two months, from $32.49 to $15.05. It bottomed out at $11.91 March 23.

DXC was created in 2017 through the spin-off of the enterprise services unit of Hewlett Packard Enterprise and a merger with Computer Sciences Corp. Its 2020 fiscal year ended Tuesday. It posted $20.7 billion in revenue and $1.3 billion in net income in fiscal 2019.

Beacon moved to Virginia from Massachusetts in 2013 and has made several big acquisitions in that time, expanding its reach into new markets. It cracked the Fortune 500 last year and posted $2 billion in revenue and $27.4 million in net income in fiscal 2019.

More likely, it's ready cash for offloading the non-compensated workers...

• it's not us, the virus made us do it...

COVID-19 pandemic has nothing to do with it. DXC has long term contracts so even with our clients having a blip in income, it wouldn't affect us 1 bit. The COVID-19 pandemic is an excuse to get cash on hand, for what I do not know. Maybe for BIG cash payouts to the board.

So let’s get this correct - in order to pay off the loans the money has to come from somewhere, and delaying pay rises for workers will fund the loan payments? Is that correct Sal?