Road Bike, Cycling Forums banner
1 - 9 of 9 Posts

·
pass the hot sauce
Joined
·
196 Posts
Discussion Starter · #1 ·
I read today on newsvine that CSC will be cutting 5000 employees (mostly in Europe) over the next two years. I would speculate that this does not bode well for their continued sponsorship of a pro-cycling team. Does anyone know what their contract term is with team CSC? I wonder if Riis has another ace is his back pocket...

Associate Press via newsvine.com said:
EL SEGUNDO, CALIF. — Computer Sciences Corp. on Tuesday said it plans to cut about 5,000 jobs, or about 6 percent of its work force, over two years and is considering selling the company, a provider of information technology services.

Its shares jumped $2.30, or 4 percent, to $59.59 in early trading on the New York Stock Exchange after rising to an new 52-week high of $60.09 earlier in the session.

Computer Sciences said its board has decided to explore the company's options for improving shareholder value, in response to recent expressions of interest, and has hired investment bank Goldman Sachs & Co. as its adviser.

The announcement came after The Wall Street Journal, citing unnamed people familiar with the matter, reported in its Tuesday edition that Computer Sciences is in talks that could lead to a potential sale of the company for $10.6 billion or more.

In Tuesday's announcement, Computer Sciences said it would cut 5,000 jobs from its work force of 80,000 employees as part of a major restructuring to improve the company's cash flow and earnings.

The restructuring plan involves 4,300 job cuts during fiscal 2007, which began Saturday, and 700 job cuts in fiscal 2008. Most of the reductions will come in Europe, the company said.

"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," Chief Executive Van Honeycutt said in a statement.

"After lengthy consideration, we have decided that this is an appropriate time to deal with the issue through a restructuring," Honeycutt said.

Computer Sciences expects to take a related charge of about $345 million this fiscal year and $30 million in fiscal 2008. Without those charges, the company expects the restructuring to save it about $150 million this fiscal year and $300 million in fiscal 2008.
 

·
Rollin' Stones
Joined
·
2,560 Posts
billions with a B.

Whoa, billions of dollars? I guess if CSC does drop the cycling program it would get picked up somewhere else ala Postal to Disco. But, billions of dollars are on the table and a measly little millions for cycling? I think they could squeeze it in. I hope they could, such a strong squad that's fun to watch. Just like Mapei. wait a minnute.....:)
 

·
Back from the dead
Joined
·
20,626 Posts
cydswipe said:
Whoa, billions of dollars? I guess if CSC does drop the cycling program it would get picked up somewhere else ala Postal to Disco. But, billions of dollars are on the table and a measly little millions for cycling? I think they could squeeze it in. I hope they could, such a strong squad that's fun to watch. Just like Mapei. wait a minnute.....:)
I wonder if any of the 5,000 people losing their jobs will consider those "measly little millions for cycling" money well spent.
 

·
Registered
Joined
·
156 Posts
mohair_chair said:
I wonder if any of the 5,000 people losing their jobs will consider those "measly little millions for cycling" money well spent.

That's for sure. That millions would have paid for some of those salaries.

Sponsoring must be tricky...how do they gauge ROI? Does everyone here know what Milram or Quick Step, or Mapai is? I just researched and found out Quick Step makes flooring (makes sense with that name). But I doubt everyone goes out and researches the title sponsor to find out what they do. Especially ones that are not very obvious...like Milram.

However, due to being a huge fan of cycling, I personally like finding out what the title sponsors do. Next time I need floors for my house, I'll look into Quick Step :D Or if I need to warm my house, I'll see if I can get some LiquiGas :eek:
 

·
NeoRetroGrouch
Joined
·
6,491 Posts
mquetel said:
I read today on newsvine that CSC will be cutting 5000 employees (mostly in Europe) over the next two years. I would speculate that this does not bode well for their continued sponsorship of a pro-cycling team. Does anyone know what their contract term is with team CSC? I wonder if Riis has another ace is his back pocket...
When companies get in trouble the first two things they normally do is give the top mgmt a huge bonus and increase their marketting. The team may get more money. - TF
 

·
Registered
Joined
·
178 Posts
Well I think that Riis and the team will be able to attract a new sponsor rather quickly. The problem is right now that they may not get the budget for the entire year (if it has not yet been paid out in full). Knock on wood !

Another headache that CSC does not need.
 
1 - 9 of 9 Posts
Top