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By | Paul Kunert 17th May 2016 09:32

CSC grabs pistol, plays employment paintball with P45s

Almost 250 staff at risk of redundancy

Wimbledon is around the corner, the hippies are getting ready for Glasto and sickly integrator CSC is cutting jobs again - the summer season is upon us.

Almost like clockwork, the US-headquartered company has again kicked off yet another redundancy programme - it ran one in June last year and one in May 2014.

In a memo to the local workforce - seen by us - Mark Pickett, acting GM and finance director for the UK, Ireland and the Nordics, said it had “some successes in FY 16”.

“However, the UKIN business still anticipates strong headwinds in the market from an increasing variety of providers, continuing price pressures and a number of additional challenges to achieving our agreed financial targets”.

Pickett said meeting the hurdles will include: “reshaping our delivery structure in some areas to better align with business opportunities”, and “getting the right cost structures in place”.

He also claimed CSC needed to “ensure” the skills on board “match customer demand”, balance “capacity in light of lost contracts won and pipeline opportunities”, and raise the “offshore capability to increase competitiveness and correct our pyramid”.

“To respond to the challenges, we have identified up to 248 roles that potentially could be removed from the UK and U organisations in consulting, apps, healthcare and GIS.”

Staff consultation is to begin in the coming weeks to “discuss business proposals for achievement of these reductions. We hope to be in a position to advise those impacted by the changes”.

The latest round of cuts are far less dramatic than the 800 people put at risk of redundancy last year or the 750 in the year before, which is progress of sorts. They come after the departure of UK, Ireland and Nordics boss Sanjiv Gossain who exited in January.

One contact at CSC bemoaned the constant cost-cutting, “It is bullet time at CSC again”, while another asked us “Will it ever end?”

CSC last year spun off its North America public sector business from the rest of the group; this was the part of the organisation that was consistently profitable.

The company, which recently won the race to buy business process serving outfit Xchanging, reported sales of $5.29bn for nine months ended 1 January. This was down 14.6 per cent year-on-year as operating income slipped to $148m from $178m. ®

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