back to article DXC's new boss has quite the cleanup ahead after frankenfirm exits Q2 nursing $2bn loss

A 10-digit dollar loss for Q2, hundreds of millions in forecast revenue clipped for the second half of the fiscal year, the ownership of business units being reviewed, and an admission that years of redundancies came home to roost. DXC Technology CEO Mike Salvino – who was only confirmed in the role two months ago – last night …

  1. Pascal Monett Silver badge

    I wish him luck, for the employees' sake

    "Our people need to be clear about their career path at DXC"

    Oh, the path was quite clear before : the exit was right there. It's going to be one hell of a job to regain employee trust and demonstrate that management has indeed changed, if that is the case. Still, at least the are words about employee retention, that's a first change.

    If this Salvino guy does turn DXC around, in mentality and not just profits, then I might well consider myself impressed.

    Because he's starting pretty far down, one must admit.

    1. Binraider666

      Re: I wish him luck, for the employees' sake

      The saving grace of being at the very bottom, is that the only way is either to remain the same, or improve...

      1. teknopaul Silver badge

        Re: I wish him luck, for the employees' sake

        Or find 2 billion per quarter losses unsustainable and collapse.

    2. Anonymous Coward
      Anonymous Coward

      Re: I wish him luck, for the employees' sake

      "Because he's starting pretty far down, one must admit."

      My view is DXC is toast in most western countries - they have tried outsourcing IT to "cheaper" countries and gutted their operations in western countries of almost everything except management. If Salvino can recover from there, he's a goddamn miracle worker because many of his markets are now operating on single figure profit margins so there isn't a lot of money to pour back into them to re-establish the company.

      In less developed countries (BRIC plus MEA), a "new" DXC could emerge - they seem to be chasing the business and providing usable good solutions both technically and financially. The challenge is that the BRIC plus MEA business is significantly smaller than DXC today.

      It's also possible that I'm being over-optimistic and selling DXC at a bargin basement price might be the best that Salvino can hope for before the ship sinks. Particularly as he sails towards those icebergs.

    3. simonlb Silver badge

      Re: I wish him luck, for the employees' sake

      Our people need to be clear about their career path at DXC

      What is clear to me is that anyone's career path is much better served by working for just about any other company rather than DXC.

      1. Douglas Wardle

        Re: I wish him luck, for the employees' sake

        Hold on - not just any other company. I trust you've paid attention to the IBM threads during the past years.

    4. AMBxx Silver badge

      Re: I wish him luck, for the employees' sake

      It's known as 'kitchen sinking'

    5. GrandPaEd

      going to be one hell of a job to regain employee trusts' sake

      He had better start with pay raises right away and not wait for the fiscal year end , because by then it will be too late. No raises in 5+ years means were being paid less today to do more than yesterday. And most of the DXC people I talk too won't put in extra time on projects anymore.

      Time to get rid of the two in box management style as well. A people manager is just stupid. A functional manager should be enough!

    6. macjules Silver badge
      Coat

      Re: I wish him luck, for the employees' sake

      So, I take it that nobody is now whistling DXC then?

  2. Anonymous Coward
    Anonymous Coward

    Selling bits off...

    Is this a precursor to a sale I wonder?

    Also there is no way he has 'met' 80,000 employees. He may have come across that number in total across town halls, conference calls and site visits but that's not the same as meeting people.

    1. Anonymous Coward
      Anonymous Coward

      Re: Selling bits off...

      Did he go to India ????

    2. A.P. Veening Silver badge

      Re: Selling bits off...

      Is this a precursor to a sale I wonder?

      And not just any sale, but the Mother of all Fire Sales.

  3. Anonymous Coward
    Anonymous Coward

    This was baked in the cake !!!

    When you fired thousands and thousands of qualified permanent, dedicated, well-paid & onsite IT staff and replaced them by contractors, un-qualified, un-dedicated, remote and poorly paid "IT contractors" on the other side of the planet who barely speak English, that was bound to happen no matter what and no matter when.

    It was baked in the cake.

    DXC you got what you deserved: go down the drain and I will have a glass of champagne ...

    (And I forgot ... the IT Agencies who milked the contractors .....)

  4. Doctor Syntax Silver badge

    he has hired five people for roles including HR, corporate ops, global delivery and overseeing "key accounts"

    They're going to be kept very busy if they're going to do the work of all those who've been fired. It's not more managers he needs.

  5. Sandtitz Silver badge
    Joke

    About that subheading

    "This poisoned chalice had better be delicious"

    No, the chalice (from the palace) has the brew that is true.

    The poison's in the vessel with the pestle!

    1. J. Cook Silver badge
      Boffin

      Re: About that subheading

      Another movie that bombed when it first came out, but turned into a classic. (for those that had to look it up, like me, the movie in question is "The Court Jester" starring Danny Kaye, from all the way back in 1955. it was classed a bomb because it didn't break even, losing almost 2 million dollars back them.

  6. Anonymous Coward
    Anonymous Coward

    Bullshit Generator - Grim reality of cheap labour and outsourcing.

    Sounds like he's been visiting the management bullshit generator [https://www.bullshitgenerator.com].

    Glad I did not accept the their job offer all those years back; took them an age to make an offer and then finally when they did they declared that the role they had insisted needed security clearance did not in fact require it. If they could not get a simple thing like a job specification right then I had little faith in how they could run any large project. Yet another company facing the grim reality of outsourcing with cheap labour, add them to the list British Airways, Boeing (etc).

  7. Anonymous Coward
    Anonymous Coward

    Does this say what I think it says?

    "GIS margin reflects ..., as well as a slowdown in our delivery cost takeout actions as we work with select customers to improve service," said Saleh."

    We sold things we didn't have the capability to deliver, and the customers are holding our feet to the fire, and we may not show a profit from the current contracts, but we _might_ be able to keep the customers. Is that right?

  8. son of sam

    "Meet the new boss, same as the old boss"

    Current employees will continue to see their salary eroded by inflation, with no cost of living raise ever.

    Out sourcing to lost cost countries will continue.

    The new CEO will earn millions in salary and bonus as DXC circles the drain.

  9. Death_Ninja

    Talk is cheap Mr Salvino

    Talk is cheap, but on the other hand, the previous regime didn't even talk - that's how s0dding miserable and despotic they were. Not even at the beginning.

    I've seen "Sal" already engage with employees in the areas that he has talked about selling and listen to them.

    This is unheard of under Mikey...

    There is a glimmer of hope...

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