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CSC picks up the axe yet again, eyes 800 staffers' quivering necks

Reorg-addicted biz even targeting its grad scheme for latest job cuts

A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)
Job cuts: 786 set to go from the UK and Ireland

Exclusive CSC is preparing to axe almost 800 staff in the UK and Ireland in what it is calling a "Get Fit" phase, with current proposals to transfer some of these positions to near-shore and offshore centres.

Bloodletting is a seemingly annual custom for the scandal-hit ailing integrator. It is just over a year since CSC put 750 workers at risk of redundancy.

UK veep and GM Sanjiv Gossain has written to staff to inform them of their fate “as we move into the next phase of our transformation”.

“We have identified up to 786 existing roles that could be potentially removed from across the UK and Ireland. Our current proposals are that some of these will be transferred to near-shore and offshore centres,” he said in the note seen by The Channel.

Consultation with reps from the UK Employee Forum, Unite and other recognised trade unions has already begun.

“We will also consult with our workforce in Ireland if necessary”, the veep added.

The divisions hit include Global Infrastructure Services, Global Business Solutions (GBS), Applications Managed Services, the graduate training programme, Emerging Business Group, and GBS Healthcare.

The latest move comes just months after the company initiated a re-org in November in a bid to make service delivery more efficient and effective, although no jobs were slashed.

Gossain stated in the missive that chopping jobs “is not about cutting costs, this is about rebuilding and remixing for growth. It will involve new development and training initiatives, new talent acquisition, new career advancements and growth opportunities”.

Since CEO Mike Lawrie took charge, the business has initiated a number of redundancy programmes and was criticised by Unite last year for its strategy of “never-ending cost cutting” and being “addicted” to reorgs.

In CSC’s Q3 financial results ended 3 January, Lawrie admitted that it had experienced “issues” with recruiting staff with skills needed to complete contracted work, meaning not as much business was closed and billed.

The firm ended the quarter with sales of $2.94bn, 6.5 per cent lighter than the corresponding quarter in the prior year. It posted a net loss of $314m compared to a profit of $271m.

CSC was slapped with a $190m penalty in December following a probe into its accounting practises and is currently, and the company is currently investigating allegations of kick-backs to win biz in Oz.

A CSC spokesperson said: "We are making a significant investment in our people to ensure our global workforce is fully aligned with our business and client needs.

"This will involve new development and training initiatives, new talent acquisitions, new career advancements and growth opportunities,” she added. ®

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