Impact of Merger &Acquisition on Employee Culture: A Case Study on DXC Technology

Abstract

When any merger or acquisition takes place, the motive is mainly on financial gain through market or technology capitalisation. A merger always brings with it a lot of structural changes in the newly formed organisation. The main stakeholders, apart from the Board of Directors include customers, employees, creditors and suppliers. The employees are involved in the process, throughout the entire journey and its aftermath. The state of the employees during and after the mergers is not the same. The employees would be in a state of insecurity and apprehension about their positions and future. Any merger would have its impact on the work culture and employee satisfaction. It is necessary to understand the employee's perspective on mergers. This research is focussing on the case of a recent merger in the IT industry. The spin off merger of HPE with CSC had resulted in a new company, DXC Technology. The study has conducted a review of the merger, with emphasis on its impact on the employees and has been conducted in the Chennai division of DXC.