Feeds

Pay and holidays trimmed for CSC outsourcers

Client cutback countermeasures

Intelligent flash storage arrays

Thousands of workers at IT services firm CSC have been given a temporary pay cut and asked to cash in their holidays, as customers hold back on spending.

Approximately 6,800 employees at CSC's Americas' Outsourcing group were told by email on January 18 that their pay is being reduced as a "temporary measure" thanks to "unprecedented financial challenges" and continued cutbacks in client spending on.

In the email, seen by The Reg, America's Outsourcing president Joe Schecter told his staff: "We have seen cutbacks continue in our client's spend, especially in some of the most impacted industries such as defense."

A CSC spokesperson told us: "CSC's success requires that we achieve financial performance objectives even at times when it takes difficult actions to meet them."

To make up the revenue shortfall, CSC told employees they must take five days paid leave between January 15 and April 1. Management has calculated the saving the company needs to make amount to one week's pay for people above a certain income bracket.

It's also asking employees to cash-in their paid holiday time at a rate of $0.50 for each vacation hour they decide to trade, with staff expected to cash in at least 16 hours.

Schecter said the action was designed to avoid "additional" reductions in CSC's workforce and to "preserve as many jobs in Americas Outsourcing as possible."

CSC is a $16bn outsourcing and services operation with 94,000 employees, and defense is one of its core markets.

CSC has gone through a number of restructurings since 2006, with staff cut and jobs sent to low-wage countries to help save money. Cuts have been made in Europe in 2006 and 2007 with 5,000 staff eliminated. Remaining staff were send mince pies for Christmas by management to help sweeten the blow in December 2007. Staff cuts were also reported in Australia in 2009.

Despite the bad news, CSC announced its participation in two defense-related projects on Thursday. CSC has joined a consortium with Cisco Systems, General Dynamics, and Harris Corp to win a US Navy integrated network project, the Next Generation Enterprise Network (NGEN) initiative.

Also, CSC will provide analytical and technical support to the US 24th Air Force Cyber Command in San Antonio, Texas for one year, with an option for a four-year deal.

Update

Thanks to a Reg reader who forwarded a copy of the original CSC email.

Remote control for virtualized desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
NATO declares WAR on Google Glass, mounts attack alongside MPAA
Yes, the National Association of Theater Owners is quite upset
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.