Thread regarding DXC Technology layoffs

And Finch is still here! She must be good at other services she provides

Op you got it spot on, how did you know Hughes was gone on Feb 1 when other people were saying his staying, you also knew about the streaming and the cuts in middle management layers due to be announced shortly.

The only thing that hasn't happened is Mary Finch been chopped, I guess that's because Mike Salvino stated that they wouldn't be able to get rid of his Finchy legacy, or she has other uses.

Wonder if she will eventually go, or survive after her continuing non "work" performance after Raul has eyeballed for nearly 4 months and seen she delivers nothing.

More announcements to look forward to soon.

Hughes gone as expected, but the bigger problem Mary Finch is still here.

Surprised she's been given a chance, after Raul slammed her publicly that she's doing such a bad job, the expensive sponsorships she has setup are not a good use of money and the good work folks do aren't marketed.

He even re iterates poor marketing is still the case, why would you keep someone who Mike Salvino brought in to serve his needs and who does little besides the few emails a year. She's costing a ridiculous amount t of money.

Wake up Raul, you need to make further chops at the top of these redundant Mike people and replace them with folks who will move things forward at 25% of the cost.

@2syv+1qRbxVBm - Bro, you are bang on. I have been in meetings wherein for a small pidly task there will be 3 PM's - 5 useless managers - another 5-6 techies - all on teams but no one will open their mouth and talk. If you push them hard for answers they will reply after 5mins in teams. This is crazy offshoring. What a waste of time.

I have a graduate developer working for me who has a breakdown each time I ask a question.

He’s done 3 weeks work in 5 months. And we are charging the client $1200 a day for his ‘hard’ work. I can’t say anything as his boss. He also seldom replies to direct Teams messages.

This is where DXC is going wrong. Short term scams.

After these last couple of years, I have learned that all of the DXC executives only know how to run a company that is already successful in the first place. The moment adversity or decline happens, they decline too.

Its not even a security delivery problem. Nothing dxc delivers is done properly and to its maximum capability. All of it is bare minimum and ten percent of what the technology is capable of for the client.

Thats largely caused by it being rushed to go live followed by handing over to guys who's only job is to check the power light is still green.

There aren't the clever guys assigned to polish the service to even mediocre effectiveness let alone peak.

It's just a load of wonky old garbage.

New CEO has no clue how DXC is selling Security. Problem is it’s not been integrated with other things in DXC. Other offerings/ services have had to implement their own embedded security because DXC security capabilities don’t support its offerings and services. They don’t play well internally and even treat internal groups as paying clients. Problem is they have been trying to sell point security solutions, mostly software related, that you have to then integrate ( which they do very poorly ). They should be growing security hand over fist but their portfolio is so weak. Also security tries to steel revenue recognition from other services when they haven’t even contributed to the service delivery. It’s been such a mess.

Security is shrinking because DXC has nothing to offer , nothing to do with the management it has to do with what DXC can provide and that’s a BIG ZERO!

Raul skirted alot of issues, but he was very very clear on the poor performance of Security and Marketing.

On security it's was laughable that the unit was shrinking at such a fast rate when the market is growing. Both Raul and the Analysts worked that one out on day 1 didn't take day 40.

Whose solely responsible for that unit?

Referred to as "Marks Unit" that explains the reference to Mark. He is responsible for its decline and his head is about to roll.

Even looking forward the Book to Bill is 0.82 which is disastrous forward outlook, it should be 1.2.

Would you recruit a guy who is shrinking your business 5% per quarter and going forward is going to shrink it another 20%?Mark is responsible for this as his the VP of the unit and has to go.

If things don't change and the useless cronies are kept on the company will become Mike no 3, shrinking rapid when its competitors can grow.

For the time being It's Raul and not Mike3, so however much you like Hughes its proven he cant deliver, it's just a case of when the announcement is made.

If you folks can work this out you then business is not your field.

It was implied on the [earnings call?] that Platform X has no AI! "still a pretty human-centric centric ticket/issue resolution business process "

We know its a pile of legacy rubbish, just used as a prop by desperate DXC execs to hide the awful cloud & ito results, and worsening workplace performance. So if it has no AI then lets update the phrase from "AI-infused" to "AI-sprinkled". or how about "Platform X - with a hint of AI" ??
Either way, its all irrelevant, its part of a stone dead business unit that will probably be spun off (closed down?) very soon

So from the transcript..

James Friedman -- Susquehanna International Group -- Analyst

Hi. Thanks for taking my question. Congratulations, Raul. You mentioned in your prepared remarks that you were anticipating potentially participating, I think, was the language in the growth in security.

And it does seem to us like it has underperformed the wider market. So, I was just wondering, how is it that you're going to accelerate growth there?

Raul Fernandez -- President and Chief Executive Officer

Sure. Great question. Thanks, and nice to meet you. I think there's a couple of issues.

One is how we have traditionally sold it. It's been an ingredient across multiple business unit sales and did not have a focus on selling the great people, the great projects, the great case studies that we have as a stand-alone. So, we're emphasizing the ability to go to market directly in Mark's business unit and being able to tell the story, both in combination with the other business units, which is kind of the history but also by itself

So "Mark's business unit". I think he'd have said "security" otherwise.

Doesn't sound to me like he's for the bin at the moment.

Of course this does mean there are no excuses for security not selling now. It's down to Hughes or he's for the chop.

@1vyr+1qRbxVBm It was implied on the that Platform X has no AI! "still a pretty human-centric centric ticket/issue resolution business process "

Hughes is definitely gone. The number of times the Raul and the analysts showed how bad it is when the whole security world has been growing madevit clear. He cant publicly say on a call about dodgy Hughes but his made it clear if your listen to the call. See below from the call, cant be any more obvious, saying its been run badly.

Let's start with our security offering. Cybersecurity is a top C-suite concern given the increase in global and state-sponsored incidents. 

The need for security continues to grow, and we fully expect to participate in this growth to a better degree than we have historically.

You mentioned in your prepared remarks that you were anticipating potentially participating, I think, was the language in the growth in security.

Security declined 5.1% year to year, with revenue flat quarter to quarter and in line with the first half of the year. Bookings were 0.81x.

it gave me a really good sense of where we could do better, how we can position ourselves better.

As you know, that segment is growing, and we're not growing anywhere near the rate of the market. So, there's some upside there that I think if we approach it with the right additional talent and the right focus, we can see those results because the demand backdrop is there and our abilities and our capabilities and our people are here. So, connecting those two is the first step.

Yeah Mary Ferrari is clearly toast.

How the he-l did Raul get away not answering the direct question about Mike's departure

Also we will be declaring platform - x as a segment under GIS to show the market how we are leading in that space (similar to the insurance sector in GBS)

I don't know where the OP got that Mark Hughes was for the door... The transcript says that Mark is going to be allowed to sell security directly.

So no I don't think he's for the axe at all.

Mary hopefully will be.

As for the rest, I don't think Raul knows which way is up now or maybe ever. I don't think as interim he paid much attention. I'd imagine the next twelve weeks will be hectic for him as he needs more than the fluff he spoke here to report back with.

The dodging of the Salvino question was so much hogwash. Keep watching for the dirt to come out because I am certain it's dirty af.

Great news, the sooner this company implodes the better, allowing us sad, pathetic employees to move to a proper firm. News on the grapevine is Dxc in the UK is going to lose their lucrative BAe contract to capita! Time to exit the door now.

reading earnings call transcript was illuminating - Raul (but you can call me Mikey3) tried the "i'm new here, only been around 40 days ..." and got shot down by the analysts pointed out he's been on the board 3+ years; they pushed him on Mikey2 and the Accenture failures he hired, laughably worrying they'd all depart (where on earth to, with their reputation destroyed?); they asked why he's still bothering with modern workplace and cloud & ito given they are basket cases - and to all of these questions he gave non-answers. Only insights we got were that modern workplace will overtake cloud & ito next quarter to win the "unbelievably bad" result with a 15+% revenue decline, and tellingly that Mikey3 wasted some of his first 40 days participating in a security RFP where DXC got knocked out at the final 4 stage! Final 4, ie did not even get to last 3 even with the CEO participating! why was this deal even qualified to waste money pursuing when you don't even get to the last 3. Is DXC just chasing anything that moves in the hope that if you chase enough you may get lucky and win one?

wow - even worse than expected. No reason given for Mikey2 sudden departure, failed after 40 days to find anyone willing to take the job. Predictable revenue decline continues and is in fact accelerating (Q4 called out for bigger declines, and book-to-bill now well below 1 - 12 months ago it was 1.34 and still managed a 4.7% revenue decline, so imagine the story in 12 months time). Over 30% of shares have now been repurchased in last couple of years, so no prizes for guessing where free cash flow is going, until company bought.
GIS continues as basket case, another near 10% decline and Cloud & ITO retains its crown as circling the drain with a 10.9% decline and book-to-bill of 0.72. Just as well they have AI-infused Platform X otherwise who knows what would have happened!

See
https://seekingalpha.com/article/4666953-dxc-technology-company-dxc-q3-2024-earnings-call-transcript

DXC Board member since 2020, having previously served as Chairman of the Nominating and Corporate Governance Committee and as a member of the Compensation Committee. A little over 40 days ago, I was appointed Interim President and CEO.

As a director, you get a good sense of the business, its values and its challenges. But as an operator, you get to go deeper and fully appreciate the talents, technologies and great work that our employees do every day around the world. You also get a really good sense of how we can work smarter and elevate our performance.

Who cares about just 40 days , the board had been around a lot longer. Guess they could t fine anyone d-mb enough to take over as CEO of a sinking ship. The board didn’t have confidence in any of the senior executives either

Guys, Just 40 days. So be easy on him. Security and marketing - guess he got the right idea.

The proof of the pudding (Mr. Fernandez) is in the action in the next week's months.

That's good news if sl--eball Hughes is going. Mary was for Mikeys benefit so makes sense for her to move on. Will save a few million on her.

Interesting how he dodged all the questions on why Mikey left suddenly, something not right there. Company not being open and honest.

He also didn't comment on where company is in the growth phase or isnt, wanting more time.

Looks like his going to be benchmarking and reviewing the business units, faster goto market and execution, the managers with cut mentality will have to change, they may start to have a tough time and get replaced.

Interesting times ahead.