EDS is axeing 5,200 jobs worldwide by the end of 2004. The computer services giant had already announced that it was making 2,700 of these job cuts in June, so this news represents more belt-tightening.

EDS yesterday announced a net loss of $0.5m on revenue up 6 per cent to $5.24 billion.

In a memo to staff, Bob Swann, CFO, said the company thinks it is now better positioned to grow its business. He expressed confidence in EDS' ability to turn the financial corner in 2004. But the imperative to cut costs, including staff costs, remains.

"We need to continue streamlining our operations, however, to compete effectively against technology conglomerates and low-cost overseas providers," he said. ®