CSC is pressing ahead with plans to axe hundreds of workers, brushing aside concerns from some employees that customers are already feeling the pinch of past cost cutting actions.
In what has become an annual ritual for CSC, almost 800 employees were put at risk of redundancy in May, with their roles earmarked to be sent to near or off-shore locations.
The job cuts are to be made in numerous divisions, including Global Infrastructure Services, Global Business Solutions, Applications Managed Services and the grad training scheme.
The word inside CSC is that the workforce is already strained and reducing the headcount by the order of magnitude proposed will have "an impact on supporting clients".
This is not the first time El Chan has pointed out the limitations of yearly redundancies – the strategy may flatter bottom line growth temporarily, but puts more pressure on those remaining at the organisation, and saps their morale.
Redundancies were expected last autumn, but CSC opted to shift the chairs around in a re-org.
CSC execs hatched a plan recently to split the US public sector division from the rest of the business – this is the only profitable area of the company.
What they have planned for loss-making parts of the business is not yet clear, but management have so far failed to find a buyer for it.
Our sources say management has gone quiet about the job cuts, though internal documentation was distributed to staff earlier in the process, entitled a “timeline for role reduction stream”.
Voluntary redundancy is currently open to limited groups, but the possible start of compulsory leavers will begin on the week commencing 20 July, the document indicates.
CSC said it is pushing ahead with the local job cuts and increasing the use of off-shoring. Unsurprisingly it denied that customer support was damaged by previous staff purges or will be in future ones.
"As you would expect our commitment and service delivery to our clients during the transformation process remains a priority and we continue to deliver high quality services and solutions to clients." ®