Thread regarding DXC Technology layoffs

Two stories which tell you what the market thinks...

This one tells you that the combined company still doesn't have the capability to compete with the upstarts:

https://m.economictimes.com/tech/information-tech/atos-dxc-merger-if-successful-wont-pose-a-threat-to-indian-it-firms/articleshow/80223925.cms

This one tells you pretty much the same plus pointing out why ten billion won't be enough to convince the shareholders :

https://www.crn.com/news/channel-programs/atos-and-dxc-technology-deal-not-for-the-faint-of-heart-analyst

I think the shareholders won't take it and even if they do, due diligence from atos should reveal that what they think they are buying (ie the company dxc talks about being) doesn't actually exist.

I think it will fall through, which isn't bad news because the market also thinks that Salvino is on track to get dxc at least to stable if not growth immediately. That would be an impressive win given the starting point.

As someone currently working at AT&T who will be transferred back to DXC then really worried over the potential 'Atos' deal. We lost a lot of clients to them and know a lot of staff who were then laid off shortly after transferring to them. Stuck between a rock and a hard place really.

After Atos performed a due dilligence, the offer of Atos will not raise. The offer might be dropping to a more realistic price.

Bid is too low. Share price was $56 when sal came in so they will need to come up with a better offer

This will just kick sal into action as he needs to counter.

There's a long way to go before this one gets off the ground, if it gets off the ground at all. Given that the CSC/HPES merger was over a year from announcement to actuality, this will be even longer as it is literally a bolt from the blue. CSC/HPES were in talks and analysis for a long time before it was revealed publicly in early 2016.

Some interesting aspects about Atos's plans here.

They seem to want US market share, which they think DXC has.

They particularly want cloud, big data and cyber - which DXC has spectacularly failed to gain any sort of market share at all - unless you count having vacuumed up loads of ServiceNow integrators.

Atos also seem to have have suffered the same problems as DXC - wanting to be focused on the new technologies while gaining the bulk of their revenue from (bad old) ITO. Remember kids, ITO is bad, we mustn't do ITO.

I'm not convinced that shareholders will approve the buy out, I think its too cheap for them.

I'm also not convinced Atos actually have a plan that will work.

We will see.

q+18NTOjrL - Good call they could in theory close all UK offices, make redundant as many staff as possible and then the new company + secure clients can they rehire people again - on temporary basis and possibly on less money.

In theory (Didn't happen last time with a CSC/HPE merger into DXC) as the merging company getting flood of money from the merger then the staff that are being WFR could be paid on generous redundancy deals - unfortunately this did not happen and unlikely to happen - judging from history with this company

If they time this right they can announce NewCo on April 1 as a bigger joke than last time.

Can they offshore secure account work though?

Also if this goes ahead UKI employees will disappear basically?

I have saved Atos the trouble and written the due diligence document for them.

DXC: looks like sh1t, smells like sh1t. Conclusion: it probably is sh1t.

sk+18NTOjrL - interesting and frightening if they are offshoring all / most of Atos UK jobs then there's little hope for UK DXC employees having a job post merger.

IF this is true it is bad news for the UK DXC staff. See the Atos thread on this site - they are cutting costs in the UK at a prodigious rate - they are offshoring ALL UK jobs.

Atos will be next big IT company to pass away .....

Interesting as quite a few good workplace people who left HPE/CS/DXC went to Atos. Atos in Europe have always been really good in the workplace business , as opposed to DXC since the CSC takeover, who really didnt understand it. Can see lots of job losses with a merger of the two companies.

All you need to know:
DXC shares were up 8% to $28.50 in pre-market trading in New York, while Atos dropped 10% on the news, making it the worst performing stock on the Paris SBF-120 index.

https://www.reuters.com/article/us-dxc-technology-m-a-atos-exclusive/exclusive-french-it-firm-atos-makes-10-billion-dxc-bid-approach-idUSKBN29C1EJ

So, we have a company that is struggling with debt and losing revenue annually and consistently. Another company is acquiring other companies left and right (I am using the term acquiring rather loosely here). Both companies are facing similar internal issues related to morale, structuring costs, and a management-induced complexity of a organisation where you cannot see the forest before trees.

Now, one is interested in acquiring the other; a company that is similar in size and possibly in revenue, as well. Where have we seen this before?

If this goes through, ATOS or not, history will repeat itself and I will turn the page back to page 1 of this website.

Birds on a feather merge together

https://www.thelayoff.com/t/18rv3QEX

18NTOjrL - good point could be good buy for Atos to get the IP and clients owned over to their brand taking over good technical people with knowledge - in theory. Danger of ineffectual too many layers of waffling middle management going over instead - very likely and Atos not having good enough technical people with know how to support the business 'DXC' efficiently.

One thing we can bet is to marry the two companies together there will be lot of WFR going forward with potentially whole DXC depts - knowledge being transferred to Atos equivalents with little or none of the DXC being retained at all or not all that long.

Time for DXC's to brush up their CV's - they will be needing it.

One thing for sure the Ceo and board of DXC will like this (can't loose ) offloading the DXC dinosaur, big issues and making some $$/££ in the process and retiring for life.

ATOS isn't exactly a trend setter ...

Epically dumb move on Atos' part - do they not read this site? ;-)

https://www.itpro.co.uk/business-strategy/mergers-and-acquisitions/358258/atos-reportedly-aims-to-acquire-dxc-for-10