Feeds

Pay and holidays trimmed for CSC outsourcers

Client cutback countermeasures

Mobile application security vulnerability report

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.

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.