CSC reportedly plans layoffs ahead of HPE merger

Dive Brief:

  • Computer Sciences Corp. plans to lay off about 500 workers ahead of its merger with Hewlett Packard Enterprise's enterprise services business, according to a Computerworld report. But the company says the layoffs are unrelated to the proposed merger. 
  • A federal application for employment benefits filed by the Texas Workforce Commission on behalf of an unidentified CSC employee or employees states that the company is letting U.S. workers go as it moves additional work overseas ahead of the HPE's division spin off. 
  • The benefit application was filed on behalf of an employee in CSC's Global Infrastructure Services division. It's not clear which divisions of the company might be affected by the layoffs.

Dive Insight:

The benefit application read, "CSC merging with HP (Hewlett-Packard Enterprise) caused services to be shifted to India. This included teleworkers in the U.S." 

Richard Adamonis, head of global communications at CSC, told Computerworld in an email that CSC layoffs are not a consequence of the merger, which should be complete in March 2017.

"Any reductions referenced in this application were taken by CSC in the normal course of business and are unrelated to the proposed merger," said Adamonis.

In May, HPE announced it plans to spin off and merge its IT services division with Computer Sciences Corp., a deal that could save HPE $1 billion in its first year. Following the move, HPE expects to have between 50,000 and 60,000 employees after it spins off its IT services unit, CEO Meg Whitman said.

With the notification of the spin off, no additional job cuts were announced at HPE.  But last September before it split into two companies, Hewlett Packard said it would cut about 33,000 jobs over the next three years.

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