Thread regarding DXC Technology layoffs

I earned a perfect score in Wank Word Bingo while listening to Mikey and his goons talking sh!t.

Lawrie is positioning whatever is left of DXC (after selling of parts and pieces) to be absorbed by Amazon Web Services and he'll ride off into the sunset with his bag of gold.

I agree, what value can we possibly add that a vendor can’t do better directly.

EVERY ONE STOP doing what your doing and start learning AWS. Its the only way to keep your job and get salary increases

EVERY STOP what your doing and train on AWS, if you want to keep your job and get salary increases

Americas Region All-Employee Audiocast with Special Guests: Mike Lawrie and Jo Mason

Continue to off shore to lower cost countries for legacy business. It’s pretty basic the company is moving from an out sourcing company (infrastructure, server , storage, backup etc) to a purely service company. Why would customers come to us for any of legacy business, let alone for services when they can go directly to AWS or companies that are already services companies

"...We’ll get more details out on the Analyst Day in November."

I would also be on the lookout for the Analyst Day in November of this year. These earnings calls focus on the quarter. The Analyst Calls take a broader and longer term view of the company and where it is going.

The exact date will be announced on the DXC investor page.

"When do you expect to see overall constant currency revenue growth?" oh no, not that old chestnut again. Thy've been asking for that pivot point since 2013. It usually gets blamed on restructuring costs, headwinds, legacy contracts, supplier costs. This year it's the fault HPE's integration. Ask me again next year when Amazon and Microsoft have canibalised our ITO and we can add in modernisation costs. Oh, and dont' forget the $185M we spent on severence, the cheeky blighters wanted paying for their years of service. We need to make the company lean, mean, biolnical, automatic, analytical and predictive to identify cost efficeinces before it disappears up its own EBIT.

"30% of our work is done by suppliers, meaning third party. And nothing more – not nothing, relatively little has been done on dealing with that. So when you have 30% of your labor costs tied up with contractors, we think there’s a lot. We haven’t even applied Bionix yet to that supplier base. We haven’t – as we begin to develop the talent cloud, there’s an opportunity to begin to source some of those skills and capabilities through the talent cloud as opposed to third parties."

What he means is that in the rush to get employees off of the books (AT&T, Manpower and others) and swap salaries for op-ex, we've ended up with 30% of the labour working for these "non-DXC" companies.

It was a quick way of spreadsheet gymnastics to manipulate the stock price.

Now he's on about either squeezing those third party costs (most likely) or replacing the work they do with his new "talent pool" of 20 year old grads. Either way, not good news for those staff already kicked out to a third party - who'd have thought that even effectively leaving DXC could leave you exposed to Mikey!

And...

"We’re hiring into our global delivery centers and leveraging our graduate program to continuously refresh our talent base and improve our labor pyramid. Our objective is to have 40% of our workforce in the bottom three layers of our organization, and we currently only have 29% of our workforce in these layers. And automation will be a meaningful deliverer and driver of additional savings."

Bottom three layers? Does he actually mean layers as in management layers? If so, how the hell did we end up with 61% of really quite senior management? Is he really saying that out of 150,000 people 91,500 employees are senior management?

That's obviously what he's trying to tell investors, but I have a feeling "layers" is actually pay brackets...although such things have never been talked about before.

Hmmmm

"And as I mentioned, we are executing on our synergy plans for the year. I also believe there’s opportunity for further margin expansion longer term. These include location, mix shift, labor pyramid optimization, automation and continued supply chain efficiencies. On location mix, roughly 54% of our employees are in nearshore and low-cost locations. We’re planning to increase that mix by 10% to 15% in our traditional business. We’re also making progress off-shoring work provided by third-party contractors, while at the same time investing in our digital centers in the U.S., the UK and other countries."

So 10-15% out of of 46% of on-shore resource to be moved.... that's one quarter to one third of onshore jobs to be moved to El Cheapo locations.

Isn't there a massive US all hands call today with Mikey and his blow up doll? Coincidence?