DXC Lets Go 10,000 Employees; Almost 50% from India
DXC Technologies, an end-to-end IT Services company based out in Washington D.C has chopped off 10,000 employees as part of its turnaround plan. Remarkably almost half of those employees are based out in India. Being one of the largest delivery engines for the company, DXC employs around 43,000 people in India. Mike Lawrie, CEO, DXC Technologies, says, “This balance between digital growth and traditional decline will continue to be lumpy as we go through the next year. But, this is the revenue dynamic that we talked about before that will ultimately support long-term growth for the company”.
The average DXC cost per employee is $108,000 i.e. two times than Accenture, three than Cognizant an Infosys. With the recent growth challenges the company has been facing, India operation reported 2,702 crore in revenue in 2017-18, compared to 2,808 crore in the year before paves for half the job cuts in India. DXC started with 170,000 workers and now the count is at 130,000 people, almost 40,000 people jobless in two years. However, the company hired 2,000 cheap staff in fiscal 2019. The officials also remarked that the company is going to build a ‘digital’ business to offset traditional outsourcing and the balance between digital and traditional will continue through next year to supply long-term growth for the company.
“DXC ‘eliminated’ an additional 4.6 million square feet in office space through real estate consolidation, and ‘rationalised’ nine data centres. Since the merger, we have reduced our faculty’s footprint by more than 30 per cent. In the year, all the activities yielded $500m of in-year savings and around half of those were reinvested into digital capabilities”, says, Paul Salah, CFO, DXC Technologies.
Founded in 2017, DXC Technology is world’s leading independent, end-to-end IT Services company and its technology independence, global talent and extensive partner network help clients harness the power of innovation. It has established more than 250 industry-leading global Partner Network relationships, with Amazon Web Services, AT &T, Dell EMC, HCL and more. .
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