Thread regarding DXC Technology layoffs

Interesting earnings call

Some reasonable questions posed about revenue being down and the excuses provided - challenges hiring Digital skills. The answers didn't seem to go down too well, with one person even asking whether morale problems impacted revenue.

The analysts don't seem to realize how bad morale is, and that poor morale means that many people won't work for DXC. They also don't seem to understand that recruiting graduates is being done due to the unwillingness of DXC to hire skilled professionals at market competitive salary rates.

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| 2081 views | | 8 replies (last November 7, 2018) | Reply
Post ID: @OP+W171UZq

8 replies (most recent on top)

The 'how's morale' question was interesting. I follow these calls (sad I know) and I don't recall the word 'morale' being mentioned on previous calls.

Of course, Lawrie will have no idea how bad morale really is; he rarely encounters employees near the coal face and when he does most will be reluctant to paint a negative picture to the CEO. Similarly his senior managers will present a relatively rosy picture when reporting upwards.

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Post ID: @gde+W171UZq

Earnings Call Transcript...

https://seekingalpha.com/article/4219144-dxc-technology-company-dxc-ceo-mike-lawrie-q2-2019-results-earnings-call-transcript?part=single

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Post ID: @xtu+W171UZq

Absolutely.. dxc has way too many managers.. the organisation can do a lot better without these overheads most of whom are in offshore locations like India..or Bangalore...person managing 2 managers calls himself senior manager and people with just 10 to 20 people reporting to them are service delivery managers.

Whatever happened to span of control and all that.. bring in some efficiency here and dxc can make a lot of savings..

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Post ID: @ria+W171UZq

Quote "....... Removing the senior managers in most instances improved morale. Because whenever you delay an organization or you remove positions that aren't adding a lot of value, "

Senior local managers were treading water in the end. All they could do to justify their position was sack the real workforce - At every WFR stage, incompentant middle ranking favorites were kept and better ones were let go.

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Post ID: @top+W171UZq

I’d not worry too much about Bionix, this is coming from somebody who works in Bionix.

What I’ve seen is a few collaborations with some vendors who can add bolt ons to our current offerings. The strategy is BS, we have tools here in NA but we don’t leverage either the tool or the technical know how to other regions... this needs a whole new thread in itself.

The programme is run by people who are not developers or operations staff, but rather admin people, these people can’t see an opportunity if it hit them in the face.

I quote, most of the Bionix labelled stuff you see in the company was born out of frustration because of no staff left and people didn’t have a choice but to automate in their own personal time just so they could go to sleep on time. Or it’s just work they do everyday relabelled as Bionix just to meet Bionix targets. Yes there is a target to Bionix sh--!!

That’s why when you go on the internal workplace platform you will see all sorts of nonsense being posted everyday, most of which is not relevant to the people at the coal face.

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Post ID: @nvo+W171UZq

And what about workforce optimisation with bionix. It directly means We 're going to see more layoffs . Especially in the non digital world, which is traditional IT. Add the runoff accounts to it.. we can look forward to major WFRs in the next few quarters.

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Post ID: @fzv+W171UZq

I completely agree with the comment " Quote "....... Removing the senior managers..." posted a few minutes ago. The top management is equally responsible for the mess.

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Post ID: @gvn+W171UZq

Quote "....... Removing the senior managers in most instances improved morale. Because whenever you delay an organization or you remove positions that aren't adding a lot of value, the workforce understands that and they see that. ......."

I believe a lot of people believe morale would improve a lot more if a couple more of the most senior managers were removed. Also a pretty terrible slight on the senior managers that were removed, when they were just following directions from the head of the company.

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Post ID: @pmm+W171UZq

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