Mike drop, DXC-ya later! Lawrie immediately ejects as CEO from IT outsourcing giant Beleaguered IT outsourcing specialist DXC will open business Thursday minus the only CEO it has, to date, ever known, as Mike Lawrie is stepping down effective immediately. The US-based biz announced on Wednesday that Lawrie, who has operated as board chairman, president, and CEO ever since the company was formed in 2017 from …
"(And you won't be missed.)"
I'm not so sure. In the future, Mike's time might be remembered as the time DXC thought it still had a viable business...
I'm not saying he couldn't have done better, but the problem is that DXC have been shedding both staff and customers for a significant period of time and it hasn't fundamentally altered the direction of travel.
Now that they've made cuts at the bottom and top of the organisation, I think DXC might finally be getting close to the real issue.
During his tenure, DXC became the world’s leading independent end-to-end IT services company
No it's not.
"world leading" in unceremoniously getting rid of staff, yes. As an "IT services company", you've gotta be kidding me.
built significant digital capabilities to help DXC execute its strategy
I call bullsh1t: How can you claim this when most of the talent was shown the door? (Unless the word "execute" means something else?)
We look forward to his continued leadership during this important transition.
Bullsh!t!
True won't make a difference if Janey the Gibbon was in charge - DXC is tainted in the business with its savage removal of excellent staff and it struggles to keep clients happy and to try to deliver its Digital Transformation
More WFR will be in the pipeline and the new CEO won't have a chance to save this company from its final demise and break up to other companies than will buy the clients profile and strip out further large overheads - mainly staff costs.
Why on earth are you celebrating? This guy was hand-picked by Lawrie. What makes you think, given his pedigree, that he will do anything remotely helpful to employees remaining at DXC?
Now, if the board had fired Lawrie and brought this guy in to sort out the mess, sure; maybe. Bu that's not the case. And Lawrie's cold, dead hand is still there...
https://www.dxc.technology/investor_relations/ds/32534/79994-mike_lawrie_biography
You know he was such a dearly loved guy and all are missing him so much, that within an hour of the new CEO announcement, someone from the marketing and communications took down his bio page.
Fortunately he has the perfect blueprint of how not to run a company. Mikey will not be missed by anyone. Hopefully it’s not to late for salvino to build something from the ashes. First thing he needs to do is make the employees happy and improve morale. I’ll be watching this progress with interest as it may be worth returning to help rebuild it now.
Lol!!!!! What a joke... the plaudits and thank you’s and well wishes... sound like politicians trying to put lipstick on a pig... how these people can get up there and put out bullshit statements like that while EVERYONE knows it’s bullshit is laughable. Do they think ANYONE buys their bullshit? Only if you are an imbecile like them...
I work for a make DXC partner.
DXC never pays their f*****g bills. It never fails to amaze me to see the CC chains from their team in a major Asian country as the finance & procurement folks send you round and round and round and round with every f*****g excuse in the book. For months.
Not remotely kidding. We're talking millions in invoices on a regular basis.
They're hot garbage and need to be shut down. And frankly anyone who works for them shouldn't be doing anything more than pumping gas. Heck, even that's probably too much.
Work out the interest you would make on that money.
They aren't incompetent, its a money making strategy that has been used forever - use free credit from suppliers by delaying payments and early payments from customers to boost your income by having the money sitting in your accounts rather than someone else's.
Supplier contracts usually address payment terms - not supplying additional goods and services also help focus the mind although I accept it is not always possible.
THIS.
I worked for a place where we always asked for net90 terms from our suppliers, and paid them on the afternoon of day 89 or 90. and the few customers that we gave credit to, was almost always net5 or, rarely, 10/15. I think we had one company that had Net30.
And then we wondered by our suppliers hated us and in several cases dropped us once things were settled and refused to sell to us...
the 2nd in charge was also the 'chief beancounter', which explained a lot.
"And frankly anyone who works for them shouldn't be doing anything more than pumping gas. Heck, even that's probably too much."
I downvoted you because of these two sentences - and only this. The rest of your post I agree with wholeheartedly. When I "left" CSC there were still some people who actually gave a damn about supplying a good service to the clients despite all the crap flowing downhill so, given the number of staff they still have, there must be some who still have a work ethic.
Musn't there?
@ Pascal- You are confusing Accenture with Andersen Consulting. They were relieved of any connection. This is how fake news happens and people look uneducated. I wish DXC good luck as we do not need a company that big to fail. For the sake of the employees still there, let's hope it sticks. I left a few months ago and was relieved it was over. This regime change will be good for them- I wish it had happened last year.
How I recall this was that Accenture was spun off from Andersen Consulting, not Andersen.
SSDD.
Legend has it that a lot of partnerships opened up right before Andersen folded. Based on the story below, it sure seems possible.
https://www.bizjournals.com/baltimore/stories/2003/11/17/story2.html
"Former Andersen partners lost the money they had put up for their partnership -- anywhere from $50,000 to more than $1 million. Many, including Bloom, had taken out loans to cover their partnership costs. Some borrowed enough to cover their partnership contribution for future years, never guessing Andersen's future would be in doubt."
I'd heard rumors before but it's the first I thought to look it up.
Andersen Consulting *is* Accenture. While there are claims that the name change was because of Enron, it was because AC had spun off from the accountants (Arthur Andersen), and had to pay the latter (if it was more profitable) 15% of their profits, which they objected to. So in 1997 they demanded independence and in 2000 were granted that (in return for the billion dollars they held back until the issue was resolved). They renamed themselves because the ICC ruled they couldn't keep the name.
In some ways that split came just about in time because 2001 Enron went to the wall and Arthur Andersen (the accountants) found themselves in deep doo-doo. They sold off all their international businesses (to E&Y or Deloitte), and other consulting firms picked off the rest. The company now called 'Andersen' is a group of ex-Arthur Andersen partners who bought the name after Arthur Andersen folded.
"The market will decide whether the company lives or dies. And that's fair enough"
Wow. You must actually believe that. How cute.
Or, more hopefully anyway, is that a code for "vacuous corporate raiding investors who don't know what they're doing aside from screwing over the employees and long term investors, and have no business having anything to do with how a corporation behaves dictate whether a company lives or dies"?
"Or, more hopefully anyway, is that a code for "vacuous corporate raiding investors who don't know what they're doing aside from screwing over the employees and long term investors, and have no business having anything to do with how a corporation behaves dictate whether a company lives or dies"?"
I'm just trying to think of an example where corporate raiders came into a healthy company with competent management. The raiders usually appear because they have money that a company desperately needs and banks have reached the point where they will no longer provide loans and credit. Without money, the company quickly stops - DXC is already struggling with competing for long term deals because customers are concerned it may not be around for the 5+ years that the deals will last.
The issues you raise about employees and investors are valid, but they are likely to occur regardless of whether the corporate raiders appear.
Which is more humane? The old frail man wandering into the woods before dying of starvation or the wolves finding him and tearing him apart? Or continue in the the hope that the old man realises the error of his ways and suddenly becomes young and healthy again?
This post has been deleted by its author
1. Jo Mason, if you haven’t already, start sweating profusely. Sal looks like he’s plenty capable of cutting his own steak. Which means, you represent no “tangible” value whatsoever.
2. Board of directors, Mike Lawrie and rest of his cronies should be fired for cause. In ignoring the business, employees and customers they have been singularly focused on stockholders and screwed that up royally. DXC stock price on Sept 12, 2018 = 91.42; DXC stock price on Sept 12, 2019 = 32.01, a 65% drop. Not one of them should receive a penny. The only thing worse than the damage they’ve done is rewarding them for it.
"Jo Mason, if you haven’t already, start sweating profusely. Sal looks like he’s plenty capable of cutting his own steak. Which means, you represent no “tangible” value whatsoever."
While Mikey is Chairman until Dec 31 she can rest easy. If Salvino takes a day longer to sack her, he will have proven his lack of competence.
She can find another job by then. I'm betting it will turn out to be some form of domestic employment. (Mikey will still someone who can deal with his meat.)
Who the hell designed that webpage? It was slow loading on my 1gbit connection and inspecting the webpage turns it out its 31.6MB in size.
"Armed with a portfolio of more than 260 patents, and unparalleled knowledge in the areas of cyber, cloud, analytics, mobility, advanced networking, systems engineering, machine learning, and agile software development, no one has an innovation engine as powerful as ours."
Yeah, no.
Oh how I want to tell you what's it's like in DXC on an L4-level but I can't or rather I won't, as you wouldn't believe me. The only thing I can say is that most posts seem to be from current or ex employees and they are ALL spot on but the mess is even bigger than what's been said in any of the past year worth of DXC articles The level of incompetence in the mgmt chain and the abysmal lack of care for our clients cannot be put in words. I'm audi5000!
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