Thread regarding DXC Technology layoffs

As a comparison to where DXC seems to be heading, its worth looking back to 2008 just at the point HP acquired EDS. At that point in time HP Services was approx $26B in revenue, EDS was $25B and CSC was just over $16B. For reference Accenture was $23B that year.
Fast forward to creation of DXC in 2017, by then HP Enterprise Services came to the table with $19B in revenue (so Meg managed to lose 62% of their revenue in services), and CSC turned up with $6B (also a 62% shrinkage in revenue we can credit to Mikey 1).
5 years later and the $25B DXC has become a $16.5B DXC (well done Mikey 2) heading towards $15B in a year with current forecasts and announcements. For reference Accenture is now approx $50B revenue.
So what does this mean? It means Accenture revenue is up $28B since 2008, and that the ancestors to DXC are down $52B in revenue. So Accenture has taken just over half of the lost revenue, with MPhasis and other Indians taking the rest.
Stunning performance and leadership ... and DXC today has slightly less revenue than CSC had back in 2008, with 50% MORE employees today! Outstanding.

JP most than think that s sieze the market isn't working, they think the threat to Mphasis who are growing 15%+ is no longer from Dxc who are shrinking year on year and that decline is trumpeted as an achievement, see below.

JPMorgan's Overweight stance on Mphasis comes due to strong high-teens growth expectations, declining headwinds from the DXC business, continued strong deal win momentum with increased sizes and durations and stable margins, with reinvestments for growth.

Is it because there's still demand for the smaller run & maintain, smaller chunks of the remaining cake? Cake which is not as profitable as the larger, more profitable pieces they sold off to Veritas and then Dedalus Group.

I don't know what is left that you could call profitable. It is just keeping afloat having focussed on paying down its debt and trying to generate some cash flow. But there is very little retained knowledge collateral and what is left is getting eaten by 30% attrition and long-standing, dependable clients who have walked away.

The advice to buy shares last year (even offering employees incentives to buy) caused investors to purchase $899K worth of stock only to see its value fall a further 3.3% to Feb 2022 making it now worth $827K. Aren't you glad you didn't invest now?

But on the positive side,- there is a demand for run and maintain, and DXC cloud saw marginal increase in sales. But whether they can get the 28% attrition under control, retain knowledge and sustain retain those long-standing clients whilst attracting new ones, remains to be seen - as there hasn't been any real strategy to face-off to current threats, other than to hold the ship steady on a course that will likely see revenue loss exceed $2Billion by the end of FY22.

DXC can ill-afford more cost take-out, restructuring and right-sizing, as they need to focus on debt management and be prepared for the post-pandemic economic headwinds to kick in. And we know DXC is always blaming those pesky headwinds. Shame they can't blow out some of the Senior crew.

"If book to bill is > 1 why are revenues still declining"

The reason is pretty simple, I think:
If you deliver x days of a project with a project delivery from a hig cost coutry your revenue is much, much higher compared to if you deliver the same project from a low-cost country...margin is exploding, revenue is declining, book to bill is icreasing, due to the mass overload.

This is my assumption and impression.

No he's doing the charity thing to improve the sustainability report... Which increasingly is used by investment companies.

Many great engineering tech companies( e.g. Boeing) soared to great heights for generations until a new philosophy emerged, Financial engineering replaced technical engineering. The stock price is what matters, not the thousands of great technical minds that transformed the world. When I see the CEO of DXC justify giving to all theses charities all over the world, is it because of all the tens of thousands of layoffs he caused to enrich himself and cronies?

So in theory the revenues should grow - but I believe they have stated that bit happens in 2023

Latest utterings from Mikey 2 and team were that revenues will continue to fall in 2023 (and that was before they sold $500M of business), and that only in 2024 will revenues start rising again, but even then only by 1-3% which would not even get the revenue back to where it was in 2021. Meanwhile as stated elsewhere Accenture and Indians make large revenue gains today

Look at the Indian outfits... they are growing at phenomenal rates - just take a peek at Infosys $$$ for example. DXC is Toast, so get out now. Posting here will not pay your MORTGAGE, BUY YOUR BEER OR FULFIL YOUR SOUL! The Cybersecurity market is white hot at present, interviews are 5/6 rounds so get multiple applications in. Believe me the more Interviews you do, the more you learn - it will click for you as it did for me.

The only explanation is that the "bill" amount is declining but the future bookings are higher.

Which would mean that actually a lot extra has been sold but current revenues are declining.

So in theory the revenues should grow - but I believe they have stated that bit happens in 2023.

Of course, no jam today, jam tomorrow. Ever the mantra of the highly enumerated to the peasants.

Kentucky math: https://youtu.be/lhxsNXpoCZ8

“But the Emperor has nothing at all on!” said a little child. “Listen to the voice of the child!” exclaimed his father. What the child had said was whispered from one to another. “But he has nothing at all on!” at last cried out all the people. The Emperor was upset, for he knew that the people were right. However, he thought the procession must go on now! The lords of the bedchamber took greater pains than ever, to appear holding up a train, although, in reality, there was no train to hold, and the Emperor walked on in his underwear.

Book to bill is another of the largely meaningless stats, subject to a lot of financial engineering - the "book" is the full price of the anticipated future work whereas in reality to get the business signed/delivered DXC has to offer substantial discounts before it gets billed and that > 1 numbers slip to a 0.8/0.9 number which is what we see in actual revenues - a slow decline