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Stingy DXC Tech tells staff to breathe in and tighten those belts

No travel or catering for internal meetings, as for external meetings... get the memo?

Execs at DXC Technology have imposed a series of penny-pinching measures on staff just two months after the tech outsourcing corpse started trading, and amid a redundancy programme.

The belt tightening message was delivered in a company memo, seen by us, which stated: “As part of combined efforts to improve our Q1 performance, we need to reinforce the restrictions on travel,”

This means “no travel for internal meetings…including mileage-only travel”, while staff are urged to use “common sense and discretion” and “attend as many client meetings as practically possible via skype/ teleconf”.

The scrimping didn’t end there - staff were told there will be “no travel for attending external conferences”; “no travel booked less than 14 days in advance (except client invoiced”; and finally “no catering for internal meetings”.

Workers should seek travel approval from CEO Mike Lawrie and and exec veep and GM Mike Nefkens, as all “non-compliant/ not approved travel will not be reimbursed”, and “audits will be performed based on reason for trip”, the memo added.

DXC, a corporate mash-up between CSC and HPE Enterprise Services, started trading on 3 April.

To counter falling revenues and sliding profits, both standalone businesses have been in cost cutting mode for the past five years and now that they’ve joined forces, senior management seem to feel there is no reason to change policy.

Back in March at the investor presentation, DXC forecasted cost savings of $1.6bn over the next three years by consolidating data centres, reducing real estate including “sub scale facilities” and chopping staff numbers.

It is not alone in cutting back on staff travel costs: IBM has told staff they need special dispensation if travel to customer sites cost more than £75, though someone forgot to tell CEO Ginni Rometty who swooped into the Hursley R&D labs recently by helicopter.

DXC has yet to respond to calls for comment. ®

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