Thread regarding DXC Technology layoffs

Realize that DXC is no strategy anymore!!

Nothing here but legacy and aristocracy.

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Post ID: @OP+1hbWtfq2

5 replies (most recent on top)

To those saying that there isn't a strategy, you're wrong. There most definitely is a strategy, and it's effectively unchanged from the Mike L days.

The strategy is to cut staff, reduce the client base, and shrink the company. I've never quite worked out which bits the leadership actually plans to keep.

Layoffs = big short term profits, so each quarter the results look great. This keeps Wall St happy. This in turn gets big bonuses for the senior leadership team. So they keep reducing staff costs to boost profits and get more bonus. Shame about all the staff they lay off in the process, but all they want is a bigger bonus - and they know exactly how to get it by reducing costs.

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Post ID: @3wlf+1hbWtfq2
The best thing would be to be acquired by one of the the Indian pure plays - seems like it is their area of expertise and business (GIS and definitely GBS).

Perhaps the most likely scenario as opposed to Mikey2 plan to be a niche and much smaller player as a standalone entity. Likely to happen in FY24 when the projected growth phase is supposed to happen but doesn't occur, and after all the shrinking Wall St finally loses patience with him

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Post ID: @2kgo+1hbWtfq2

The best thing would be to be acquired by one of the the Indian pure plays - seems like it is their area of expertise and business (GIS and definitely GBS). Then the rest can go back to Digital Transformation and innovation (aka new Orleans DTC and new castle DTC with exotic accents)

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Post ID: @2soj+1hbWtfq2

To be honest, to shrink to where you aren't losing money then use whatever you discover is the business you are in so you can identify new contracts of that same sort probably isn't a totally crazy plan.

It certainly is a better plan than just having vast revenues with little or no margin or even a loss.

The plan might seem a little simplistic, but on the other hand it does appear to be one thats easy to understand and isn't about smoke, mirrors, wild dreams about the next big thing and financial engineering.

M2 does appear to be a much more simple guy than M1.... for better or worse.

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Post ID: @czo+1hbWtfq2

there had never been a strategy as such throughout DXC's 5 years of troubled existence
created as a artificial construct through financial engineering all it has achieved is to continue to shrink while maintaining a cash flow and not losing money, "investing" the small profits in share buybacks to prop up the share price and reward a few senior execs with ridiculous disproportionate salaries - plan is apparently to continue to shrink profitably - perhaps the plan is also to be the last one standing compared to Kyndryl who are shrinking even faster. But compared to its other peers its been left a long way behind.

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Post ID: @eqv+1hbWtfq2

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