Finally, somebody asked the right question. and what about all the executives we hired from AECOM? Perfect strategy - Get the old gang in leadership position, so there is no threat of exposure.
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If you look at Accenture's layoff page on here you'll see there is a proper firesale going on with Accenture. Looks like they've been massively hit by COVID or taking the opportunity to use it as an excuse.
BTW in answer to the question of do we need more managers, consider this quote from Harvard Business Review:
"A small organization may have one manager and 10 employees; one with 100,000 employees and the same 1:10 span of control will have 11,111 managers. That’s because an additional 1,111 managers will be needed to manage the managers. In addition, there will be hundreds of employees in management-related functions, such as finance, human resources, and planning. Their job is to keep the organization from collapsing under the weight of its own complexity. Assuming that each manager earns three times the average salary of a first-level employee, direct management costs would account for 33% of the payroll. Any way you cut it, management is expensive."
That's pretty nuts.
1 year on an his just bringing in chums to create more unnecessary overheads when management layers should be cutting.
How many good sales people have been hired? 0
How many big deals have been won? 0
How many million $ useless ex chums have been hired? Loads
So going backwards fast, we need turnover not useless overheads.
Sort it Mike.
Because he is flaying about insulting the employees, looking like a beginner - senior staff who can see this close up, probably wince!
DXC will "use cheap labour pools" - even the Indian providers are struggling with this model now! The model has changed, but DXC does not invest in the new support architecture, it prefers to chase yesterdays glory. Good 2nd level people who are forward thinking (possibly made him look good before) are being recruited
Some kind of fruitcake we got.
It is normal people bring their own people but bigger questions, are they bringing difference in strategy, client base, changes in delivery or even building capabilities to get new deal. The answer to all is big NO. New Mike is all about MBA book gimmicks, he can’t copy Accenture style and method because Accenture is build upon principles, their own strategy (not copy paste), build advance capabilities which help them win deal. Matter of facts, every job cut doesn’t impact at all mid management (fat), all it impact at ground level who r toiling day and night yet prone to cost cut, billabity etc.
Somebody pointed well, who are joining here despite knowing situation are the one who are not in need at Accenture. Good luck ahead with legacy way legacy offering
Did Ed laugh Ho Ho Ho Ho all the way to the bank?
@1txp+176lJpqK - agree they come in, sprout their blah blah blah, decide company is DOA and collect how much they can before swanning off to their next jaunt.
DXC does not have the customer base that Accenture has, once they realize the ship can't be turned around they will take their millions and leave
i think all cleanup done ; all accenture everywhere, except they left a lot of eds middle management in some aread (read delivery) ; folks step up or you will be cleaned as well.
Ed Ho is gone?? When did this happen?
Because when a new CEO takes over , he brings in his people. That is very normal , the question is if he's bringing in new people he should be getting rid of executives as well
I just see today Ed Ho is gone! Wonder what happened?
If Accentures Share price is $214.97 and their Ebit margin 14.68% to DXC's $16.30 and and ebit margin of (wait for it) 1.22% (a good indicator of company health) then perhaps DXCthey are hoping that even some of Accenture's low performers are worthy sc-aps from the grown-up's dinner table.
Accenture drops every year 5% of the workforce, its low performers.
Those are looking for a new job. At DXC.