Thread regarding DXC Technology layoffs

I think more accurate would be 1 months seperation payment for someone on $34k (yes 50% of the employees get less than 34k, but lets go with that for now)... at $2833 payout per person he could get rid of more than 50% of the company.... everyone under $34k.

Clearly that's not going to happen but I think it highly likely we could be trimming down from ~130k people to a nice round 100,000.... that would look like the kind of sweeping crazyness CEO's like to do to end up with a good looking result that looks like they are decisive. Certainly Mikey1 liked to do such things.

@2bgr+1sD0QGQg
And you expect a full year’s salary as the average pay-off? In that case, I have a bridge to sell you…

June last year, the figure used for ceo pay ratio calculations was a MEDIAN employee salary of US$34,107.

Remember when IT was a good paying job? Not so much any more, or at least not here.

BTW salvino had a ratio of 596:1

: @1hom+1sD0QGQg use 30K as the average salary, OMG that’s less than $10 an hour. Here in the US non professionals make more than that working at fast food restaurants.

Use 60k to 70k as the average salary and I for one make more than 100K a year as a Backup and Recovery Architect

How can there be a big layoff, I saw on Linkedin that 73% of the staff was non-human

Hey ERP official accreditation is junky worth the paper it’s printed on. If you can do the work ‘, that’s all that matters

Bad maths. 12k+ redundancies

The $250m was an increase on the $118m in FY24. Use $30k average for those going.

9k redundancies…

10% revenue reduction per year,
more automation

for sure you have to reduce staff

There's a lovely hr spreadsheet that calculates what it costs to bin someone in different countries...

There's definitely not any presumption about a set figure.

It is variable but in most cases, unless you are salvino, it's not a lot of money. Definitely sub 100k

@1uqk+1sD0QGQg, if DXC budgets $100K per WFR, then someone is skimming, because I saw nowhere near that.

I agree with most of this thread, but @1egh+1sD0QGQg wtf you talking about?

"Everyone else uses cloud and the big ERP systems. None of which DXC has the skillset in because it refuses to let anyone do the official accreditation. "

I work on big ERP, cloud migrations and cloud run every day. So do a ton of my peers. We are actually rather clever at migration and S/4 conversion.

I thought AI was going to do it all and we didn't need anyone these days. Nobody seems to want anything useful doing anyway. The companies we provide service to would rather sit on software from a previous decade locked in disconnected rooms rather than upgrade it. So we're just baby sitters until it's finally not required. Everyone else uses cloud and the big ERP systems. None of which DXC has the skillset in because it refuses to let anyone do the official accreditation.

This is precisely where DXC always go wrong. Overstaffed in offshore and understaffed onshore.

They seem to think the answer to growth is cutting a skeleton staff.

If they went after older people I’m sure many won’t complain. They’ll be paying out big due to long services. But the saving will be smaller as DXC are having to pay market salaries to younger people and in many cases the older people earn way less.

High cost countries have been cut to nearly nothing already with previous rounds. They've over-hired in low cost countries, and people in those countries are complaining about not being given training or work. Expect reduction in low cost countries due to having too much people. Numbers might look high but savings will be low. I'm sure some in high cost countries will be on the block, and they'll target older workers which could get them in trouble with age discrimination. It's a real mess. Still mismanaged without a plan that gives predictable results.

I think he's not going to look for 2500, I I think he's going to aim for higher body counts to impress wall street...so axing the bottom not the top..

as noted before in other notes, $250M is not that much, previous restructuring has seen much larger amounts, typically $1B. Rule of thumb is each person in high cost location will cost $100K in compensation payouts so $250M = 2500 staff in a 130,000 person organization

Of course it's coming... Rail says $250m restructuring and that gis has excess capacity...

So gis is the target for however much $250m's worth of redundancies gets him...

That $250m isn't the cost saving (ie salaries saved) , it's what it's going to cost dxc to axe people.

Could be quite a large number of people...

Much as we'd all jump at open VR it will never happen, my money is on tightly focussed VR. Plus even open VR isn't that open, accounts still get to veto applications.

We’ll know very soon if the OP is right or not. Layoffs may not apply to all countries. But if will be one part of the „transformation“ for sure, because that’s all they know and it show results more quickly than the new operating model voodoo.

Share price is tanking…

If they open up voluntary redundancies I will be first in the queue.
I can't wait to get away from this shower of 💩that has su-ked in other good companies and ruined their reputation or got their contracts ended.

I doubt it, most teams are operating on skeleton staff.

If they open up voluntary redundancies there will be a mass exodus and that will be the final nail in the DXC coffin.

It’s not exactly a case of older staff are expensive. Everyone who’s left gets next to nothing so there’s little in the name of savings to be had.