Thread regarding DXC Technology layoffs

Karma is a b--ch huh Mikey boy? Stock price has cratered, there's a lawsuit against Mikey and his cronies for falsely inflating the price and promptly cashing out before the drop and also the investigation from the security breach from China. You s--- Mikey and now they're coming after you. Maybe if you payed your people and gave cost of living increases you'd have a better company. You criminal.

While the share price may stop below 50, I would attribute that to the market including raising of rates by the Fed. The actual share price after a few weeks will tell the real story of where the market pegs DXC.

I'd agree Mikey is on the coals Feb 14th.

I'm surprised to see the share price north of $50 this morning - Friday afternoon it very much looked like sub-50 was about to happen.

The thing that annoys me is that Mikey's utter failure was apparent right from the early days of his arrival at CSC. I am absolutely staggered at the stupidity of the market.

It seems shareholders and analysts are pretty stupid and focus on a single dimension at any one time and just echo some catch phrase they've heard elsewhere. There seems to be very little independent thought or its that publicly discussing company performance in a negative way is frowned upon because it damages prices.

One way or the other, if you are a stockholder who has lost money, I have little sympathy for you. The evidence of the disaster was always there.

DXC stock closed at 17.15 EST Friday 21st Dec at a 52-week low. Since Friday's close, more Independent stock advisors have revised their estimated of DXC stock to "Bad". Fickle bunch, aren't they? But DXC stock is rated as a "Bad" long-term investment (1 yr) with predictions that the stock could continue its fall of -45% wiping millions of DXC's value. If we look at the next 14 days (accepting of course the low-trading in the festive season), stock predictions are between $56.056 USD Upside to $47.590 USD downside, such is the market volatility on this stock at the moment.

So what has gone wrong?

A whole plethora of things have not worked in DXC's favour and the autocratic management style and some would say interference by consultants, the aquisitions and then refocus on joining the AWS/Microsoft competion as partners having tried to initially beat them at their own game, was a grave over-estimate of DXC's capability.

Poor Sales

DXC Revenue only edged up to 0.9% at the beginning of the FY2019 with its bookings then taking a tumble of 25% in the first quarter, together with timing deals and other factors. To compound this, DXC stock then fell another 18.4% after the departure of the company's America head, Karan Puri, was revealed in a leaked memo, shared by The Register. This stated that his departure was most likely linked to DXC's US double-digit sales decline; yet, CEO Mike Lawrie only announced his appointment in January of this year amid cut backs in the sales and delivery workforce

The head of global sales also departed earlier this year. The departure of an executive doesn't usually have such a large impact on a company's stock. But investors have become worried and view such incidents as a significant part of DXC's business being off-track. They have cautiously shifted investment elsewhere until more positive signs start to appear.

DXC Quarterly Q3 earnings report, February 14th 2019.

No doubt, this one will be of special importance to allay the fears of investors. After all, DXC promised $26B revenues by 2020 - which even on continued modest digital sales would have been a stretch, but now appears as a canyon to cross on negative sales. Will DXC be forced to revise its estimates or will it do what investors are hoping and announce some radical change in its business and operating model. It is unlikely that investors will swallow more of the labor cost-cutting as 'strategy' in itself. As such cuts are now arguably hurting the very bread and butter customers that might have otherwise entrusted their supplier with digital transformation. These trusted partners are now stepping back and witholding their own investments with caution until somepositive reassurances appear from the DXC.

A lot can happen between now and February 14th.

A Merry Christmas to you all.

I have to agree with your sentiments.

Current Wall Street worries aside, Lawrie's days in charge are clearly numbered. The old adage is true; as you sow, so shall you reap, and Lawrie has sown nothing but misery to thousands of families and bread winners, now ex employees. Those still working for DXC know only too well the feeling of dread and frustration, where once they use to enjoy going to work, but now hate having to toil for a company that doesn't appreciate or reward their efforts, let alone skills.

Lawrie, whether it be this world or the next, your soul is reviled and ultimately condemned. The grim reaper will catch up with you, and his take will be greater than that of the SEC.