Shares of DXC Technology (NYSE:DXC) slumped on Wednesday after the head of DXC Americas left the company, according to a memo seen by The Register. The stock was down about 18.4% at 12:00 p.m. EDT.
DXC, which was formed by the merger of Computer Sciences Corporation and the former enterprises services business of Hewlett-Packard Enterprise, has seen multiple executives leave this year, including the head of global sales in April. DXC Americas head Karan Puri, who joined the company in January, is now being added to that list.
A memo from CEO Mike Lawrie obtained by The Register announced the news: "Today I am announcing that Karan Puri will be leaving DXC Technology at the end of this week. I know you will join me in wishing Karan well in his future endeavors."
The memo goes on to talk about areas of focus for the Americas region, which include hitting its targets for the year, installing a results-oriented management, and becoming the digital transformation partner of choice.
The Register pointed to a double-digit sales decline in the Americas region as a possible reason for Puri's departure.
DXC will report its second-quarter results on Nov. 6. The company's growth has been less than impressive recently, with revenue edging up just 0.9% year over year in the first quarter. Bookings tumbled nearly 25% in the first quarter, although the timing of deals and other factors played a role.
The departure of an executive doesn't usually have such a large impact on a company's stock. But investors may be worried that a significant part of the business is off track.