DXC Technology has announced yet another round of layoffs from its workforce. This latest round brings the total number down to 18% of its staff. A lot of companies will do this as a cost-cutting measure. However, we should not forget that DXC was recently acquired by Dell Technologies.
Introduction Transition and thesis: Although it may seem like DXC is downsizing, it actually means something else entirely. It’s just a way to get rid of the old employees before the new ones arrive.
DXC is a Fortune 500 company and has over 30 billion dollars in annual revenue. They also provide services such as cloud computing and data center management. Their job cuts are not going to affect these areas, which makes sense because they were already profitable before being acquired.
The layoff announcement came after a $1.8B acquisition deal with Dell Technologies. In fact, Dell bought DXC for $67 per share, which was approximately $6.5B in total. This was a major move for Dell since DXC was an enterprise-level technology firm.
There were rumors that the two companies would combine, but that never happened. Instead, Dell took over DXC. What does this mean? Well, Dell now owns DXC’s technology patents, which is pretty cool.
With the merger, Dell is hoping to make itself known as a leading player in the IT industry. And I’m sure that they’ll continue to expand their reach into more markets.