Computer Sciences Corp. shedding hundreds of jobs in Prince George’s County

Computer Sciences Corp., one of the largest private employers in Prince George’s County, has informed county officials and its landlord that it may vacate most of its New Carrollton offices. (Brent Lewin/Bloomberg)

Computer Sciences Corp., one of the largest private employers in Prince George’s County, has informed county officials and its landlord that it may vacate most of its New Carrollton offices, where hundreds of people currently work.

The government contractor has long occupied one of the county’s largest and most prominent office buildings, a 12-story tower overlooking the Capital Beltway with CSC’s red logo on top.

The company leasing the CSC building has listed every single floor of the 325,000-square-foot CSC building as available for rent and David S. Iannucci, a top economic development aide to County Executive Rushern L. Baker III (D), said the company had notified the county that most of the jobs were leaving.

“We have been aware for a number of months that CSC was leaving most of its space in the New Carrollton building,” Iannucci said.

Iannucci said he was told by company officials that there was nothing the county could do to stem the job losses. He said he was not given a specific reason for the departures. “Apparently they don’t have the business they used to have,” Iannucci said of CSC.

Paul Saleh CFO of CSC

CSC was said to have once had 1,150 employees in Prince George’s. But CSC spokesman Marcel Goldstein said the company currently has about 450 people in the New Carrollton building. He said the company was still considering where to locate staff in Prince George's.

“CSC has had a 15-year contract that supported our employees at our New Carrollton location and, like any federal contract, there is a big ramp-up of employees at the beginning," Goldstein said.

Much of the work the company does in Prince George’s is for the Internal Revenue Service, which has a large presence nearby. CSC won a 15-year contract in 1998 to overhaul internal computer systems at the agency, but the IRS discontinued the contract last spring and rolled the work into another program, according to the contracting research firm Deltek.

In a public filing Thursday, CSC attributed a $47 million revenue drop to a “net reduction in scope and tasking on existing contracts” primarily through the IRS. Some of CSC’s business with the IRS had come under criticism from Congress, particularly a system for processing individual tax returns that suffered expensive setbacks.

Over the past year CSC has been boosting profits by cutting costs. After posting a $4.2 billion loss in its 2012 fiscal year, it earned $209 million in third quarter profits this year thanks to cost-cutting measures that included reducing the number of vice presidents from 370 to 75.

Mike Lawrie, CSC’s chief executive, told investors in August that the firm needed“to begin to show some growth as we exit the ‘get fit’ phase and move into the ‘win more’ phase.”

The CSC building, the third largest in the county by square feet, is owned by a partnership between local businessman Carl Williams and fund manager Urban America.

The partnership hired services firm Jones Lang LaSalle to lease the CSC building and John Lally, an attorney for Williams, said he expected nearly all of the building to empty but was not authorized to speak for the partnership. Urban America did not return a call seeking comment.

Capital Business Staff Reporter Marjorie Censer contributed.

Follow Jonathan O’Connell on Twitter: @oconnellpostbiz

Jonathan O'Connell has covered land use and development in the Washington area for more than five years.
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