So apparently there are some rumours about massive layoffs in DXC right after the completion of merger. We are talking 000s here.
This new initiative will be called 'Workforse Adjusment Strategy' or WAS for short.
Non-affected areas: ΓΈ
20 replies (most recent on top)
@M0XZwa3-1Locg .. I digress..
having worked with several teams in India, USA and Europe, I would say that your statement about incompetent Asia service desks is not entirely accurate. In fact, Asia service desks work much more at a fraction of the costs, and it is we the Americans who demand more at lower costs. It is only prudent for companies that need to thrive outsource their service desk as well as support staff to Asia.
We Americans have definitely better things to do.. dont we ?
1Locg, all your points are well taken. Just to bring some insight to whether customers care about SLA. Yes, customers do care about SLA (if there is one in place). A case scenario, a public agency tasked with public safety (police) and DXC supposedly has contractual obligation to provide 24/7 availability for infrastructure (all inclusive).
This is life and death matter that the customers rely on DXC to deliver.
Yes, when failing to meet SLA DXC paid penalties. Leadership continued to cut staff and yet expecting the same SLA to be met. Do you believe customers will not care? They are fed up with being held hostage. This is just one of the examples. It is exactly why USPS is set up for failure. It's a vicious cycle due to lack of effective leadership.
Mike and Mike will surely be compensated with $$ for every saving as this is the only goal.
DXC in for a surprise as clients also read this post, Clients not worried about SLA no they are worried about skilled delivery. with delivery moved to poor and incompetent Asia service desks that assist in a dialect that you barely understand with low skilled onsite engineers is not the way any CIO want to go. If I an unable to see or meet the Delivery (Good or High skilled ) person then it is a no go.....
Layoffs (Workforce Reductions / WFR) on the HPE side of the business started prior to the Thanksgiving Holiday 2016, and continue today. These are jobs that are all being transitioned to India, and employee loss through attrition will also be backfilled by people in India. Positions that are customer facing may be the only exceptions, and that is dependent upon which position(s) they are and whether or not the function can be transitioned to another existing US person.
For anyone posting who wants to place blame for this on President Trump, sorry, but that's as far from accurate as you can get. The India teams were established before the election and was part of the strategy going into the merger between CSC and HPE. BTW - the split/merger resulted in a $35M payday for Meg Whitman, the CEO during the split/merger process. Meg was a significant donor/supporter of Hillary Clinton.
I have my spies at the new DXC and can't wait to hear that the Dic---ads that CR'd me finally get their just due. That is a true statement, what goes around comes around....justice will be served!
Cut!
"Lawrie said the "big thing" about the merger, when it comes to creating short-term value, lies in synergies.
Biggest synergies we can get is to out source Mike to a lower cost county
@4nym who is your source? There were layoffs last week. The agreement is only "x" amount of people will be part of the actual transition. UK is being impacted through the end of March. Please consider what you post. We have enough "fake news" in the world without you adding to it.
WFRs at HPE on hold, likely will continue after the merger is complete.
Trump's initiatives??? which one is going to save your job? the one where he taxes the crap out of imports from mexico? the one where he tells gender confused people which bathroom they can use? the one where he rounds up all the season construction and migrant farm workers and deports them? the one where he forces a pipeline through sacred tribal lands? the one where he slashes tax rates on his cronies? or maybe the new nuclear arms race?
Mike and Mike are going to slash thousands and thousands of jobs and ship them to more "best shore" locations and Trump and his billionaire cabinet isn't going to raise a finger to stop them. but you keep whistling past that graveyard if it helps you feel brave.
To save 1.5B they would need to fire 15,000 people making on average $100,000 (total costs, including benefits and payroll taxes) each.
If those 15K people get fired over the course of many months, and on average they work 2/3 of the year, that would be 1B in the first year. But if their severance and unemployment get counted, then they might actually work 1/2 the year or less on average.
Whether they call it a WAS or WFR or redundancies or synergies, they've promised the street that there are going to be many thousands of us FIRED and they are going to have to start soon.
On a separate issue I read the following from Investopia, chuckled a little as this is exactly what I was thinking when I heard Mikey and Paul in the investor call. Trying to convince my co-workers to beware come April, but the force (actually Kool-Aid) is great my young friend...
"Synergy
The savings in operating costs usually come in the form of laying off employees. Often this term is used in press releases to add a politically correct spin to bad news.
For example, the CEO might say "While these reductions and closures are difficult actions to take because of the employees involved, I am confident that we will achieve at least $10 million of synergies as a result."
Sound familiar?
@M0XZwa3-fdv said:
" Constantly having the threat of an axe over your head surely is not good for employees health, motivation or productivity."
Of course, you are 100% correct. However this is the only growth possible in DXC. With revenues falling at ~10% PA, the only possible solution is keep culling staff while executing share buy backs.
And the $1 or $1.5 billion dollars of savings will be you and your colleagues salaries, together with the building that you work in.
This isn't scaremongering, where else does anyone imagine these savings (which have to come to offset the continual revenue loss) will come from?
They aren't going to come out of Mikey's bonus package, that you can be dead certain of!
"Lawrie said the "big thing" about the merger, when it comes to creating short-term value, lies in synergies. The deal is expecting to squeeze out $1 billion in costs in the first year and $1.5 billion per year thereafter, for a savings of nearly 6 percent a year of the new company's potential annual revenue."
Synergies = Redundancies. If they want to squeeze out 1B in costs the first year, they need to start firing thousands of employees from day one.
"Welcome to DXC! Don't get comfortable."
Nothing is going to happen before end, or close to the end of 2016. There is to much in flux... to many unknows... to much legal... to many TSA'S. Not saying WAS is not a possibly a real thing... just saying it is not going yo happen till at least EOY. I have been through so many of these it is not even funny. The negative guy is just compensating pissed he got WFR. Been there. With that said and Trunp's initiatives... I would not hold to hard to the overseas thing.... bit there will be "WAS" type things... there aways is.
If you think you are of any value to HPE/DXC you are in TOTAL Denial. Everyone is open to get the AXE. In 12 mos you will see your Indian Executives get those mega bonuses instead of you. Glad i got my severance and head in order before my WFR. Best thing that could of happend to me. Now i can sponge off the government subsidized healthcare, food stamps, less taxes, more time on my hands, no more backstabbers, no crazy drive in, more time with my family and kids, golf, hobbies to enjoy, grand health let the poor saps that are working pay for your enjoyment. Always look at the bright side and adjust your lifestyle to your specific situation. No more 13.3% California State Income tax, 7.3% social security tax and 25% Federal Income tax. Not very much of an incentive to work anymore. The older more experienced employee will win no matter. 85K is not much after you think about all the $$$$ eventually removed from it. Good Luck to those left.
If this is true, doesn't the company have to inform state and local governments so they can prepare for unemployment benefits?
There's always talk. Especially if you have a site that can earn some advertising dollars. Ahem.
ES reduced it's AF 25 percent recently to match the agreement and has bee laying off for almost two years now. It definitely won't be bringing fat along. Payroll's always combined and some back office functions at corporate, but saying there's "talk" is not news, it's gossip
Oh great, more axes to dodge. It seems now that any change is an opportunity for redundancy here. Constantly having the threat of an axe over your head surely is not good for employees health, motivation or productivity.