Thread regarding DXC Technology layoffs

UK losing so many accounts now, how much longer will it be viable?

BAE, Leonardo, MOD (Gosport), RR(Derby), NHS (Multiple). The writing is on the wall but the share price is fairly stable - WHY?

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Post ID: @OP+134GdmnD

19 replies (most recent on top)

Soon DXC employees won't need to ask for redundancies as customers continue to to dump DXC. As a result DXC will need to forcibly retrench workers as there are very limited redeployment opportunities available.

Waiting for the next dissatisfied customer to show their hand.

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Post ID: @nykk+134GdmnD

Has anyone told BAE that DXC has lost the source code to many of their applications?????

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Post ID: @8hnv+134GdmnD

Every time BAE renew it's at a discount year on year, it's at point where DXC will be paying BAE to run the contract. But it's so desperate to retain turnover it has to sign up in order to afford the millions paid to to Mike's and Saleh and all the Accenture execs recently added as overheads.

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Post ID: @7hvx+134GdmnD
  • 4pgb - why would BAE staff move into DXC or any other IT outsource provider, it is best for them to remain with a strong defence company.

It makes sense for BAE to have its own core IT services and support but hire freelancers, contractors to assist the In-house IT Department when needed rather than being at the mercy of one or more Big IT Outsource providers who hold the key to naming their pricing and having the knowledge + expertise of BAE systems.

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Post ID: @6niy+134GdmnD

DXC have not lost BAE or Leonardo.
Infact they are renegotiating an extension to BAE.

There are never been more contractors trying to fix up the BAE account than now. But anyone thinking years of slashing will be fixed overnight is kidding themselves. However BAE and DXC understand this well.

There is even talk of a few BAE people TUPE in to DXC to improve the way things are done.

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Post ID: @4pgb+134GdmnD

@3cle, Totally agree with you. Leadership at every level has been and is abysmal. Distant Managers who haven’t even met their teams, let alone what these teams do. How anyone thinks this is a way to run anything is beyond me.

It’s never worked and is one of the (many) reasons why this Company is in such a mess.

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Post ID: @4qtz+134GdmnD

Good Analysis @134GdmnD-3chs and tough one, possibly now to go through each account and see if it can be rescuable with touch negotiations ?. If clients are leaving any after negotiations then that's it and have to move on and cut any slack from the company afterwards.

In all cases there needs to be a full analysis of how useful the staff are and do they contribute anything.

in my experience at CSC and DXC there were not enough ground / technical people on the ground ( one that were there had to work excessive overtime, nights and weekend to meet the deadline) .
There were plenty off too many waffle / incompetent & shambolic managers who contribute 0% positivity to the company or to DXC's client -

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Post ID: @3cle+134GdmnD

Decent, long term projects and contracts being lost hand over fist. It’s hard to see how this can go on without more trouble.

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Post ID: @3chs+134GdmnD

The only visible way that DXC can "delight" their customers is to cut their steak, but that requires precision, sklls and timing ... all attributes that DXC cannot deliver on in the most basic premise. Go Bionix ... you are so useless.

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Post ID: @3cku+134GdmnD

Actually another scandal @134GdmnD-2qmj

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Post ID: @2qic+134GdmnD

@134GdmnD-2plb Learnardo used to be called Selex pre:-

https://www.nytimes.com/2011/12/01/business/global/scandal-at-finmeccanica-revives-questions-in-italy.html

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Post ID: @2qmj+134GdmnD

DXC is similar to other large corporates who operate world-wide. At any one time some geographies and divisions will be performing better than others and the better performers subsidise those performing less well and this is (probably) happening with the UK.

Share price is stable-is because the investors neither know about nor care much about what's actually happening within the company at account level. They are just focused on the numbers and the forecast for the next quarter.

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Post ID: @2ecd+134GdmnD

What’s Leonardo?

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Post ID: @2plb+134GdmnD

It would help if we at the coal face were just allowed to "delight" our remaining customers !
We are forever held back by clueless management intent on climbing the greasy poll !
Remove that management and the remaining accounts could flourish.

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Post ID: @2ljv+134GdmnD

I don't see much future for DXC in the UK. They never really put much effort in as it has been left as two separate companies L-CSC and L-ES. DXC does not exist as a trading company in the UK and I wonder if that is because it will be easier to split it up when the time comes. If you never bothered to integrate you don't need to separate them when you sell it.

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Post ID: @2vug+134GdmnD

No surprise really how well or not so well it turn out that CSC deteriorated under Lawrie's reign and then DXC - difficult for Sal to turn this round. May need to chop back, close the non profit making countries and centres like all of UK and start again.

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Post ID: @1bia+134GdmnD

@134GdmnD-1ycs

You only have to look at some of the big companies that have crashed and burnt recently to see that in stock trading the clamour and negative reaction hinges on one headline.

In all cases those companies had serious problems that you can see when the postmortem write up is done but Wall Street/FTSE didn't see it or rather were deliberately blind to it.

There is very much a "don't scare the horses" attitude there.

Very few stocks move much because of the particular symbols activities. The usual movement is either some sort of sector based story (~Y2K - "the internet is built now, tech stocks are worthless") or something global like a trade war with China or an actual war with Iran.

In this case, one thing broke the Mikey regime - that leaked memo in November 2018 about the US salesforce being replaced with non-specialists.

We all know of course about all of the other things and any investor could have read this board to understand a lot of those. However, that's not what they do.

As for the OP and the future of DXC UK, I don't know is my honest answer. It does seem to be terminally downward without any upturn on the horizon as you say. Again, if anyone on Wall Street truly understood the makeup of the business (ie UK&I is the second biggest source of revenue in DXC after AMER) then they might be extremely concerned.

I'm guessing though that Wall Street is currently focused on the sell off of Healthcare and W&M. Probably because that is dollars in their pockets.

Worry about the husk later, or not at all if you collect your cash and run.

Its very much a game of "take the money and don't be left holding the wreckage". There are financial upsides to even a trainwreck as far as they are concerned.

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Post ID: @1tem+134GdmnD

Made the top 10 list for 2019 so that's something
https://www.businessinsider.com/worst-performing-stocks-equities-2019-gap-kraft-heinz-biggest-declines-2019-12

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Post ID: @1ycs+134GdmnD

Agreed, based on major accounts lost in recent times (and those trying to exit), it's days in the UK are truely numbered. However, it would seem the NY Stock Exchange focuses on US business performance, followed by that for global accounts; in due course (when DXC management can't hide it anymore), they will doubtless notice the UK and EMEA results are dire, and revise the stock accordingly.

The writing has been on the wall for some time now. Personally, I'm not sure if the company forecasts at Wallet Investor (https://walletinvestor.com/stock-forecast/dxc-stock-prediction) are credible; they currently show the stock achieves junk status by the end of 2020.

I don't feel malice towards the company as a whole; indeed, because of all the hard working people who continue to give their best, I'd like it succeed. It's those at the top whom I detest with a passion.

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Post ID: @hde+134GdmnD

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