Home Industry Strategy CSC to layoff 5000 staff and sell out!
The world's third largest IT outsourcer Computer Sciences Corporation (CSC) is officially looking for a buyer and speculation is rife in the marketplace as to who could have deep enough pockets and a large enough stomach to digest the services collossus, which has a market cap of more than US$11 billion.
Companies such as HP and Lockheed Martin have been touted as possible buyers, but analysts such as Ovum believe that CSC, with 80,000 staff worldwide, is just too big to be absorbed by another services player. However, Ovum believes that CSC would be an attractive proposition to private equity firms because its low debt and high cash generating capability.

The sale announcement was accompanied by stated plans to restructure the company over the next two years, involving layoffs of 5000 staff.

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Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

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