EDS to Cut 2700 Workers
Layoffs are part of an organizational restructuring designed to cut costs.Electronic Data Systems Corp. said today it will shed some 2700 workers as part of an organizational restructuring designed to cut costs. The cuts represent about 2 percent of the Plano, Texas, services companys global work force. The move comes as EDS CEO Michael Jordan announced changes to what he called a highly fragmented structure with misaligned delivery capabilities, high costs and little product or portfolio management. Jordan said the organization will be streamlined to consolidate consulting, operations, and sales and marketing with a single sales force, delivery organization and services representing the whole of EDS.
At an analysts meeting in New York, Jordan and EDS Chief Financial Officer Bob Swan reiterated the companys financial guidance for the current quarter, of earnings of 33 to 38 cents per share.