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CSC UK waves ta-ta to axed staff, sharpens axe for next round

Two thirds of techies opt to walk with bigger payout

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CSC UK has concluded the 90-day consultation period for workers at risk of redundancy with roughly two thirds of staffers heading for the door voluntarily, insiders claim.

Sources reckon that of 640 peeps CSC included in the cost-cutting programme back in February, 330 are leaving the firm and about 220 of those are willingly walking.

"Do staff take a few thousand pounds extra as volunteers or go for compulsory [redundancy] and leave on there same date with... less in their pocket," said one person familiar with the matter.

This is the second wave of CSC UK folk to leave the integrator in as many month after roughly 300 working on the bungled NHS IT project left in early July.

A mouthpiece for CSC, told The Channel: "We can confirm that we have completed the formal consultation process and are now in the final stages of the programme.

"A large proportion of staff under the 640 job reduction programme have left or are leaving CSC on a voluntary redundancy basis."

The UK organisation previously committed to advertise vacancies at rival firms on its intranet and allowed staff to access training facilities for up to six month after redundancy.

It is also understood that employees made redundant were handed a £500 budget for future training in for a totally different career path.

Kevin O'Gallagher, Unite national officer for IT, was critical of CSC's exec management in the US but praised the local leaders' efforts to seek volunteers and make the exit less painful.

"I applaud the UK management for trying to make the best of a bad situation," he told The Channel.

The rounds of job cuts are part of efforts to slash $1bn in overheads over the next 18 months, said CSC CFO Paul Saleh last week as the firm outlined a 78 per cent drop in Q1 fiscal 2013 profits.

But it's understood headcount reduction will continue alongside attempts to save money by working with fewer vendors and improving sourcing and procurement.

"We've taken actions already in the quarter in select markets to restructure our workforce, and we're looking at opportunities to better leverage our low cost, offshore resources," said Saleh on a call with financial analysts. ®

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