< HOME  Tuesday, April 04, 2006

The Corporate Axe Strikes Again

The global economy is evaporating before our eyes. The benefit from global industry and technology is concentrating into the hands of a small number of corporations, propelled by the colossal power of global finance and greed.
Computer Sciences Corp. said Tuesday as part of its restructuring plan the company's board has decided to "explore strategic alternatives to enhance shareholder value, including the potential sale of the company."
In other words, they're feeling GREEDY. Time to whack the workers.
The company also announced the elimination of nearly 5,000 jobs, majority of them in Europe, by the end of the next fiscal. The stock is currently up 5% in pre-market activity.
Who is going to help them?
El Segundo, California-based CSC said it has retained Goldman, Sachs & Co. as its financial advisor in response to recent expressions of interest in the company.
Right after they close another deal on American toll roads.
"For some time it has been apparent to us, and to other companies in our industry, that there is excess capacity in certain geographies, particularly Europe. After lengthy consideration, we have decided that this is an appropriate time to deal with the issue through a restructuring."

The restructuring program, which is designed to streamline operations and leverage the increased use of lower cost resources [read: exploit workers], involves workforce reductions of approximately 4,300 employees during fiscal 2007, which began April 1, 2006, and approximately 700 employees in fiscal 2008, the company said.
Another swing of the corporate axe against workers. The next chop will be you.


At Wednesday, April 05, 2006, Blogger efsaturn said...

Not only are they reducing workers this is after winning new government contracts. New (or more) cash in and more workers out= bigger profits.


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