Thread regarding DXC Technology layoffs

Oh another billion dollars from this one eh?

I guess that money will go where the last 1.5 billion went - out of the door and into the greedy shareholders pockets - of course together with shares in the new company...

Two places it won't go:

1) Investment in the company

2) Anywhere near employee salary or training

When the previous CSRA spinoff CSC had a chance to make itself anything it wanted. One point five billion dollars was capable of doing pretty much anything. Instead this opportunity was pocketed by Mikey.

DXC is not a functioning business, its a financial vehicle. They don't care about actually doing any IT stuff because its a failing market. Instead its just a giant hedge fund pie with a human meat filling.

Its sad because CSC and HPE both had truly amazing pasts, did amazing things and many of us enjoyed our chance to be a part of that. Now we work for a sad lame duck with no future.

Vencore & Keypoint both owned by Veritas. The USPS was a resounding success wasn't it - losing 3.5% revenues yr on yr. Brilliant.

So, here we go again, more smoke and mirrors and now USPS give DXC $1.05 billion of cash (DXC has 85% of the shares) and because its a ‘Reverse Morris Trust’ transaction, its a tax free deal!

What next. They could pay off some DXC debts and maybe even buy-back more of its shares again?

For god's sake just sell the company to TATA, CACI International inc or Accenture and stop messing about with this monopoly board!

It was always the plan to sell USPS.

I don't really understand why the USPS spinoff is happening now.

Sure, Mikey dumped CSC's NPS (that's US federal sector business) to CSCRA in exactly the same way about 2 ish years ago.

However, when DXC was formed Mikey got an exemption clause from the CSRA contract for DXC to have federal business (it was a restriction in the terms of the CSRA deal to not compete) which I assumed meant that DXC was back in the pork barrel business again.

It also was something like ~20% of the DXC revenue figure.

I guess the headline revenue figure decrease doesn't matter as the shareholders are getting another big cash bounty like CSRA and also getting shares in the new split business too.

And again, all of this distracts, distracts, distracts from the failing falling revenues of DXC....

What you notice after a while though is that none of this is actually helping. None of the acquisitions, none of the sell offs, none of the new partnerships, nothing. Nothing is creating a growing business with a future, its just a fire sale.

If there truly isn't much duplication in labor in NewCo as Lawrie says, mass layoffs won't make much sense, since the people you would lay off are revenue generators working on teams that are already lean. The fat was cut off contracts long ago.

Don't be silly. Public companies always carry debt, often 3 to 4 times earnings. This new company looks to be no different. Interest rates are extremely low, companies make more profit on the money than they do paying the interest. Am sure there will be some layoffs for functional staff due to duplication, but that's pretty localized, and pretty standard to be competitive. Most employees should like this, and the growth chances for the company. The company looks to be pretty much all services and people, so why layoff the earners?

Wonder what govt purchasing thinks of this...

And don't forget the new company takes on a billion in debt as well

There will be layoffs and layoffs , beware and take your decision accordingly.

Old news dude