The fallout from the global US$2 billion revenue shortfall at DXC Technology has hit the local business with approximately 150 jobs cut, according to persons familiar with the matter.
The company had flagged 4,500 jobs for elimination following a US$2 billion revenue dip and a subsequent scathing critique of customer engagement by CEO, Mike Salvino.
The cuts constitute 3.5 percent of the company’s global workforce and this number appears to be reflected locally.
While it is not yet clear which parts of the business will be hit hardest, Salvino’s statements seem to indicate it is the salesforce which would be the worst affected.
Globally, the company is looking at cutting US$700 million in costs annually, with US$550 million set for this fiscal year.
“We have too many people between our customers and the people doing the detailed work,” Salvino said in a fourth quarter earnings call on 28 May.
“This causes complexity and confusion. It also erodes profitability and shareholder value. By eliminating unnecessary layers, our people will be able to deliver for our customers faster, drive meaningful revenue growth and help deepen customer relationships,” he added at the time.
DXC Australia was contacted multiple times for comment but the company had not responded at time of publication.
For the fiscal year, DXC’s revenue dropped 5.6 percent to US$19.57 billion from US$20.75 billion.
For the fourth quarter ended 31 March, revenue was down 8.8 percent to US$4.81 billion in the most recent quarter from US$5.28 billion in 2019.
DXC stock tumbled US$2.00 on the news, with shares dropping 12.10 percent to trade at US$14.56 on Friday afternoon.
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