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.

"In the remainder of 2003, we are stabilizing and beginning to restructure our core business," said Swan. "We expect to finalize that work next year and have EDS positioned for sustained growth thereafter."

(Editors Note: This story was modified since its orignial posting following a clarification from EDS officials on the companys total global workforce.)