Thread regarding DXC Technology layoffs

Talked to a guy at Fal.Con this past week. He said he worked in the defense industry and 7 of 10 clients couldn’t stand DXC.

The unfortunate reality is that DXC has a legacy of burning employees and clients at the cost of profitability.

I worked at DXC in an account leadership position and sadly I spent most of my time trying to save jobs as opposed to working with the client and my team in 2019 when that tool Lawrie was there.

Had high hopes for Salvino and team but based on all the posts he came in with a money grab team and no experience turning a company around. He must have a high opinion of himself but on the street he has zero credibility. F200 clients and above think he is a joke.

The DXC BOD should be ashamed of themselves for allowing him to run it into the ground on their watch.

My best to all of you. Hope you find a soft landing.

the value in acquiring DXC is simply the residual blue chip client base
While it is eroding and will drop to nothing in 3-5 years as enterprise clients largely complete their migrations off legacy infrastructure and leave DXC behind, it still has value today (unlike DXC offerings or capabilities) and the company still has positive cash flow so can be taken over and asset stripped at little risk
Ironically this is exactly what has been happening by the current owners of DXC's latest sponsorship toy - Manchester United. Still a significant club, but no longer a serious player at the top table of football/soccer.

Its Mike at his best bullsh-tting, calling in consultants and then refusing to comment, smoken mirrors, "sources close to management remaining anonymous",

He refused the Atos bid which would have valued the company at 1.5 times what it is today, bullsh-tting the shareholders with a "Transformation journey" which has actually cut the company in half.

The guy can't come out with any honesty or openness, shame initially you would think his decent but his just in it for himself.

DXC Technology has pulled in consultants to help senior management examine a takeover bid.

Or so claims Bloomberg, which quoted loquacious sources close to the matter that naturally asked to remain anonymous. At least one private equity suitor is understood to be in the frame, and word of the interest caused DXC's share price to spike more than 9 percent.

DXC has refused to comment.

Re Atos
DXC branded the offer, believed to be in the region of $10 billion, as “inadequate and lacking certainty in light of the value the board believes DXC can create on a standalone basis by executing our transformation journey.”

There is one question in my mind:

What business would buy DXC. Two minutes of examination will reveal a business that has rapidly declining revenues, staff morale at rock bottom, client satisfaction approaching zero, and no chance of delivering a decent return at any point in the near to medium-term future.

Shouty has run this organization down to the point where no sane investor would even consider purchasing. The only future that makes sense is to sell of the few bits that could be profitable, and run the rest down to the point where DXC ceases to exist.

https://www.theregister.com/2022/09/22/dxc_linked_to_private_equity/

This looks more like a trick of the management to raise the share price than anything else. In a 3 year view the shareholders can not be happy.
Same happens with teh Glasdoor reviews. Many happy employees giving 5-star reviews. In a way funny, but for Sal essential, as he is also measured by employee satisfaction.
It is intransparent fpr me what tricks Sal is using to pi-p the customer satisfaction or the revenue. Any ideas?

Let’s hope it is the end of rat face. 2022 is the year of rat.

It's probably all spin by Mike and the gang.

They got a advisor in for a general meeting then leaked it out that they got an advisor and there's takeover talk.

Just to prop up the share price, that way they can sell more of their pay shares at a higher price, so that $28 million becomes $35 million pay.

You cant trust anything Mike says after promising pay merits for 3 years he spins out a planned bad quarter results to coinincide with employee pay raise. This how low he can stoop.

His a liar, you can trust anything he does, but for sure he only does things which benefit himself and this operation/talk will be for him.

LOL. TLG Group. Was that the plan all along from Mike #1? Exit with huge rewards. Hand the company to an incompetent team, led by Mike #2. Purchase the pile of p-o at a huge discount. Rinse and repeat.

https://corporatefinanceinstitute.com/resources/knowledge/deals/private-equity-transaction-timeline/

Good info on how these transactions are executed and timeframes involved. Might be first half of next year before a deal can be ratified. Keep your seat belts fastened!!

i just feel sorrow for those that haven't already quiet quited.

As it stands the gang are shafting DXC, the staff, and shareholders are getting nothing.

If a new owner does the same as Mike and the gang it will be no different, at least the workers will get something.

The company has shrunk by half in Mike's tenure.

What has Mike done in 4 years, his just stripped the company from $7 million to $28 million in personal wages but nothing for the workers.

Shareholders have recieved no dividends for 4 years and the share price has dropped $10 per share.

If you don't call that screwing and asset stripping then I don't know what it is.

It's daylight open scandal, so let's move to a different owner at least we have more chance, it can't get worse than Mike.

Be realistic Let's hope the deal is done quick.

The return of you know who is right around the corner….. mikie #3 or is that #1…..

https://www.tlgholding.com/leadership/

This story will end up being the classic tale of strip and flip. Approximately two years after "takeover", the new owner, unsurprisingly, will declare bankruptcy. All the "meat" will have been picked from the bones of the DXC carcass to enrich some private equity billionaire. If you don't see these HUGE RED FLAGS by now, don't blame DXC....just go look in the mirror.

Yep it's bound to happen ATOS under $1 billion, Kyndrl under $2billion, dxc $6billion.

So for $9billion you can get $45 billion turnover. There will be consolidation and losses etc, but the devil we know is so bad it cannot get any worse.

Just needs someone with $15 billion sloshing around to but these on the cheap, the only thing stopping it will be the market falling fast, then they could be bought even cheaper.

Was on the cards for a while.

Think potential for complex deal. Perhaps a roll-up? Add KD and/or Atos to the pile of steaming infrastructure? Those 3 would be close to a $45B top line and provide some pricing power that they haven’t got under current conditions.

Thank god we may be taken over, let's hope its soon.

You can't get any worse leaders than the ones we have and at least we will get a raise.

And before anyone says our leaders are good, remember all companies have given raises this year due to inflation, so you can't get worse than Mikey and the gang.

Stock came down quickly after initial pop.

There's also this on Bloomberg
https://www.bloomberg.com/news/articles/2022-09-21/dxc-technology-said-to-tap-advisers-after-takeover-interest