Feeds

EDS to cull workforce

20,000 for the axe

  • alert
  • submit to reddit

High performance access to file storage

IT services giant EDS is to take an axe to its workforce with up to 20,000 workers likely to lose their jobs over the next two years. EDS chief executive Michael Jordan said yesterday that between 15,000 to 20,000 people "will go out" as part of EDS' drive to reduce its costs by 20 per cent or $3bn. That means around one in seven of EDS' global workforce of 138,000 face the chop in addition to 5,000 redundancies the firm has made over the past year.

Jordan made his comments in response to a question at a Smith Barney technology conference in New York yesterday during which he sought to downplay EDS' financial problems. In July Moody's cut EDS's debt rating to junk bond status, making it more expensive for the firm to borrow. Jordan said that "most of our debt doesn't come through until 2009" and that customers were not particularly concerned about the issue, Reuters reports.

No update on EDS' financial outlook was made yesterday. In July, the company said it would post FY2004 revenues of between $20bn and $21bn. It estimated full year earnings of between 20 cents to 30 cents per share or £100m to $150m. ®

Related stories

EDS slashes dividend
Moody's junk-rates EDS debt
IT services vendors bask in sunny quarter
EDS Abbey flagship project in doubt
EDS cuts losses
EDS job cuts on the way

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.