DXC Technology Company (DXC) Accused of Implementing Ineffective Workforce Optimization Strategy

According to the complaint against the company for alleged violations of the Securities Exchange Act of 1934 between February 8, 2018 and November 6, 2018, DXC Technology Company (DXC) misrepresented the company's financial condition to investors by repeatedly assuring them that the company had significantly cut costs by streamlining its workforce and optimizing its ability to capture new business. In reality, the company's workforce optimization strategy resulted in a shortage of sales personnel and lost sales and revenue opportunities. While touting promising prospects for DXC, company insiders sold over 215,000 shares of DXC stock for proceeds of nearly $20 million. On October 24, 2018, a report detailed the company's 10-15% revenue shortfall, lost customers, and the surprise firing of DXC's head of sales force, causing DXC's stock price to plummet 16%. Then, on November 6, 2018, DXC revealed that customers were scaling back upgrades and that the company’s new sales approach was ineffective. On this news, DXC's stock dropped a further 12.5% to close at $63.21 per share on November 7, 2018, and has since continued to fall.

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