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DXC Technology warns staff of multiple office closures

Well, they need to find that $1.6bn cost saving somewhere, can't be all job cuts

By Paul Kunert, 30 May 2017

DXC Technology is planning to shutter a bunch of sites as part of its mega savings plan, multiple company insiders have told El Reg.

The business, which emerged from the spin-merge of HPE’s Enterprise Services arm and CSC, has forecast a reduction in overheads of $1.6bn in three years and will consolidate office space to help it achieve the target.

In a memo sent to employees located at the Bracknell site, DXC Tech stated it is the strategy to “continually review and make optimum use of its real estate portfolio”.

“We propose to close the DXC Bracknell, Amen Corner site at the end of June 2017. The business and HR are engaged with the UK Works Council and Trade Unions and will continue to consult with them as appropriate through this change.

“Working with your business unit leadership, we are in the process of assessing a number of options to ensure a smooth transition plan for all employees, the main one being for employees to work from the DXC Aldershot, Royal Pavilion site,” the memo added.

One DXC contact said that for some the move was good, but others were less sanguine about the changes as they “live nearby so they can walk to work”.

Can’t please everyone all of the time... or is that can’t please some poorly treated workers any of the time?

Sources told us that “similar letters” were also sent to staff based at Hartley House in Hook, Pride Park in Derby and Matrix House in Swansea, with alternative locations mooted.

For some staff, this may be a short-term inconvenience because DXC has already initiated a voluntary redundancy process, though if it can’t find the requisite number of heads willing to roll, a compulsory version will roll out.

In its investor presentation (PDF) filed in March, DXC said it would slash expenses by consolidating data centre space, “workforce optimisation”, consolidating the vendor portfolio and exiting “sub-scale facilities”.

We asked DXC for comment but the PR function didn’t respond. Maybe they were in the middle of an office move. ®

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