There are too many broken processes and tools that seemingly can’t be fixed and a lack of resource to fulfil customer demand. Attrition has already peaked at 24% (about the same as the share price these days) and with the continued cost cutting, to keep pace with the losses, it just makes for a very uncomfortable journey for everyone who need some assurance from the top as to what the h3ll is going on. Obviously if your top guy has buried himself deep in his bunker then confidence will drift further and attrition will rise. Which is kind of what they want.
DXC will need to generate some dividends next quarter to avoid a complete loss of investor confidence, but it won’t be as a result of growth. We know that. It is likely as a result of yet another huge cost take out. And although they keep announcing cost take out with pride, they are not optimising costs by removing wasteful processes, admin and clunky old systems to gain productivity - because they have already proved they don’t know how to fix those things - they are having to do it by removing billable staff.
Sad times.
I copied part of someone's post from +1imeNLn6 because I totally agree with everything written. Here we have too many cost-cutting initiatives which aren't helping the company become more successful.