If DXC was in financial trouble pay cuts versus job cuts might be a way to go to try and save the company and save jobs. But this company isn’t in real financial trouble it’s profitable, there is no need to do either, but cutting jobs and threatening pay cuts is the only strategy the id--ts running this company know!
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In other words the beatings will continue until morale improves (aka ML's retirement fund is maxed out)
Despite all the chest-beating from Execs - isn't it strange that video conferencing is seldom used, yet all the Execs travel to Drano (aka Plano) for their regular talkfests that result in more WFRs. Nick Wilson had powers to override the requirement to travel in Coach which means that ML and his cronies always travel at the pointy end of a plane irrespective of what is stated in travel policies. The Execs are the big spenders that have caused the biggest drain on financial resources, forcing decent yet hardworking employees to endure third world travel approvals and too much red tape.
It's profitable but not any more than it was before the pre-combined mess of CSC and HPES. The revenue's are declining, which is no surprise considering the bids and renegotiations DXC are losing; thus the only profit they make is after the reduction of cuts to staff, facilities and travel. Someone has to pay these poor execs and those nice shareholders who took the time and trouble to invest in this lovely cash-cow. Sorry, company.
That’s a great post, and what you say is correct. However non of this negates the need to manage the change and transition and find a way through to a better future. I think we have the skills to do anything, the people in this company are outstanding, it’s a shame these same can’t be said for our leadership. There is no excuse for treating long serving (or short serving for that matter)loyal, talented and hardworking people the way they have been treated over the the last five to eight years by this company and it’s forerunners!
Greed greed greed! Gordon Gecko is alive and well!
The Unite Union in the UK have pretty much said exactly the same thing.
There is however possibly one reason which is that big IT services companies all have the same problem insofar as cloud has been as disruptive to the sector as much as email has been to postal services.
There is a decline in revenue (across the entire sector, not just DXC) that is pretty steep and we haven't seen the end of it yet.
What is needed is something new, expensive and radical because the other aspect of cloud is that its cheap.
Unfortunately genuine innovation is something DXC is not organisationally capable of both because we lack the skills for genuine technology development (the company is just an integrator of other people's kit, not a creator of kit or software) and it requires heavy capital investment (something Mikey will not do, he doesn't have that vision)
So we spiral into the ground in a race to the bottom against the other dinosaurs.
Its a shame really, both CSC and HPE had origins in innovation but became just bloated money machines and are now victims of the true leading edge of technology.