WT Business Beat

By Nick Wakeman

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Nick Wakeman

Recent layoffs part of CSC transformation effort

Computer Sciences Corp. is in the midst of layoffs as the company makes another move geared to transforming the company into a leaner enterprise focused on high-end technology services.

A company spokesman declined to disclose a number of people impacted by the layoffs, but the layoffs are occurring “globally” with no single part of CSC bearing the brunt of the cuts.

The company has gone through other rounds of layoffs since Mike Lawrie, the company president and CEO, was brought in February 2012 to save the company. Within weeks of taking the job, Lawrie described CSC as needing a “significant turnaround effort.”

The company has also undertaken several divestitures as Lawrie and the management team he’s put in place have worked to streamline operations and reduce operating costs. CSC also has been trying to change its operating model, which Lawrie said was overly complex and lacked accountability.

The company also has been making moves to increase its focus on next-generation services such as cloud, cybersecurity, big data and applications modernization. These layoffs are part of those efforts, a spokesman said.

“This new business model requires that we remix the skill base around many of our new next-generation offerings,” the spokesman said.

The company also is making efforts to re-energize its consulting business and strengthen sales, he said.

When Lawrie took over he said the effort to turnaround the company would be significant, and he wasn’t kidding.

Between layoffs and divestitures, the company has reduced its headcount from 98,000 as of March 30, 2012, to 80,000 at the end of 2013.

CSC's new business model has included an aggressive pursuit of as-a- service offerings, including application security, cloud brokering, hybrid cloud management solutions, and those are just a couple announcements from the last few weeks.

On many levels, the company seems to be headed in the right direction, and when you consider those being laid off, it’s obvious that change doesn’t come cheap.

Posted by Nick Wakeman on Apr 04, 2014 at 9:22 AM

Reader Comments

Mon, Apr 7, 2014 Bruce Milligan Chantilly, VA

This helps explain why CSC has vacated more than 100K square feet of space in the Washington Technology Park building in Westfields. We wondered whether all those employees were relocated or laid off... sounds like a mix of both.

Sat, Apr 5, 2014 Rocky Too

To truly appreciate the company, you have to review its heritage trying to fix the big IRS app systems and make your judgment from there. Determine what has changed. What intellectual capital and experience remains. The same can be said for Unisys. No wonder the customers increasingly consider contractors just a commodity, like toner and Aeron desk chairs.

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