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back to article DXC Franken-firm 'on track' to slash $1bn with deeper 'synergies' ahead

DXC, the Franken-firm made up of CSC and the enterprise services arm of HPE, is "on track" to slash spending by $1bn (£760m) this year – with plans to further ramp up the cost-cutting throughout the year. Under its "synergy plan" the biz shaved off $140m for the first quarter, according to the outfit's maiden financial results …

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  1. Anonymous Coward
    Anonymous Coward

    'Synergy' was certainly the word of the day...

    The word 'synergy' and its variations were mentioned 21 times on the Earnings Call.

    DXC seems to be trying to 'synergise' its way to prosperity which, as anyone who has studied business knows, will not work.

    7 1 Reply

  2. This post has been deleted by its author

  3. Lotaresco

    Oddly DXC also seems to be having a recruiting frenzy.

    5 0 Reply
    1. Anonymous Coward
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      Anonymous Coward

      Yep, they're trying to recruit grads heavily in the NE and Erskine.

      Suspect they're struggling to fill positions though, their starting offer seems to be around the £18k mark for a grad position (and the grad has to contract for the first six months, so will have to pay umbrella fees etc out of their pocket). Most local IT firms are offering £3-4k more for junior/grad positions as a PM or dev.

      2 0 Reply
      1. Anonymous Coward
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        Anonymous Coward

        £18k for a grad at a consultancy firm? Are they having a giggle? Those are apprentice wages. The other big IT shops are paying literally double that for technical graduates. Never mind the banks. You'd have to be desperate to take that offer, you can make more at a call centre.

        4 0 Reply
        1. Missing Semicolon Silver badge
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          18k

          Yeah, then they can claim "skills shortage", and hire from abroard. Shysters.

          3 0 Reply
      2. Anonymous Coward
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        Anonymous Coward

        When i was with the section of HPE spun off into DXC the going rate was 25k and within the first week if you where tech you where a SME in something.

        I abandoned ship around about the time they starting making grads redundant.

        1 0 Reply
  4. Anonymous Coward
    Anonymous Coward

    And those £18k grads are replacing those with 5+ years expereince

    And those £18k a year grads are replacing those who have 5 years plus experience and are expected to do the job as if they have 5 years plus experience.

    Pr bally best just become a plumber, more lucrative :)

    5 0 Reply
    1. Anonymous Coward
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      Anonymous Coward

      Re: And those £18k grads are replacing those with 5+ years expereince

      That's part of the plan to "recruit and upskill" the talent to lead the organization...

      Unclear if that includes upskilling any of the dinosaurs (those in job for 2+ years).

      Also unclear what the prospects are for "increases in compensation" for "inventory items" in the future.

      So your purchasing power (compensation) decreases in real terms over future years.

      No need to worry about repaying the student loan...

      1 0 Reply
    2. Anonymous Coward
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      Anonymous Coward

      Re: And those £18k grads are replacing those with 5+ years expereince

      Pr(o)bally best just become a plumber, more lucrative :)

      It would be. But given the endless crap treatment of junior and mid IT and process staff by large outsourcers, the unpleasant culture of large US firms, and their burning desire to move everything offshore, a plumber will have a lot more control over their own destiny, and far greater job satisfaction than working for some crapola outfit like DXC, IBM or the others.

      Would you encourage your kids to get a degree (and £50k of debt), and then go and work for the soul-eaters of IT outsourcing?

      2 0 Reply
      1. Miss Lincolnshire
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        Re: And those £18k grads are replacing those with 5+ years expereince

        The only way I'd work for the likes of Hurd, Whitman, Nefkens, Matthoolie, Wilson etc again would be as an undertaker

        1 0 Reply
  5. Anonymous Coward
    Anonymous Coward

    Removing four management layers?

    That leaves only a dozen layers, how will they get by with so few middle managers?

    7 0 Reply
  6. Mr Dogshit

    Don't forget your TPS reports

    "synergy plan" my arse

    1 0 Reply
  7. Anonymous Coward
    Anonymous Coward

    To be honest, i don't know how much more they can shave off the business...

    We have projects in the background that we should have implemented and be billing for but we haven't got the staff to do the implementations.

    People here are over worked as it is and get noting in return except the knowledge that someone higher up is getting a big fat bonus as we all wither away in our own filth.

    Then they brainwash us that "Our staff are our best asset".... I say PROVE IT..... Listen to us and act on our opinions and maybe somehow DXC could be a better place...

    2 0 Reply
    1. Anonymous Coward
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      Anonymous Coward

      You aren't shouting loud enough...

      The only way to get the staff you need is to have a quiet, off the record, chat with customer and get them to shout loudest and continue to shout. Shameful but that's the way it works.

      1 0 Reply
  8. Miss Lincolnshire

    I've got a good idea....

    ....why not stop sacking Graduates in Cobalt and Erskine then you won't need to recruit more? A significant number of Grads were cut loose back in March by HPE ES. Maybe they were too expensive @ about £21k a pop.

    I don't bother looking at The Register to see when DXC are shedding staff these days. I already know from the quarterly ramp up of connection requests I've received in LinkedIn. A dozen requests in the last two weeks, some from people who thought themselves bulletproof. Lawrie and Nefkens must have the axe out big time...... even the favourites are leaving now.

    1 0 Reply
  9. TheBorg

    Race to the bottom of services ... oh, they are already there :)

    Lets face it, grads in IT are usually project managers and you can get those in a cornflakes packet these days.

    1 0 Reply

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