The company expects to achieve $1 billion of cost savings in its first year, with 70 percent of that coming from workforce optimization measures and finding supply chain efficiencies. Those two areas are expected to drive $1.85 billion of a projected $2.25 billion in cost savings, with 15 to 20 percent of those savings slated to be re-invested in the business.
Other plans for streamlining the organization include cutting its 15,000 suppliers in half by 2020 and cutting about $9 billion from areas like contract labor and technology. In its supply chain alone, DXC is targeting $300 million in first-year savings and $750 million through 2020.
Some $100 million of DXC's projected first-year savings will come from streamlining its facilities and data center footprint. DXC plans to reduce the number of "in-country low-cost delivery centers" in its portfolio from 17 to eight while "most likely" adding a center in the United States, according to Lawrie.