EDS may cut 20,000 jobs over the next two years

[Renew Deal]

Layoffs are part of EDS' plan to slash $3 billion in costs

By Juan Carlos Perez, IDG News Service September 10, 2004

Electronic Data Systems Corp. (EDS) plans to lay off between 15,000 and 20,000 employees over the next two years as part of an effort to slash $3 billion in costs, the company's Chairman and Chief Executive Officer Michael Jordan said Thursday during a question-and-answer session at a conference.

These layoffs would come on top of about 5,000 jobs EDS has cut over the past year, Jordan said, speaking at the Smith Barney Citigroup 2004 Technology Conference in New York, where he took questions from a moderator and from audience members for about 30 minutes. A replay of Jordan's session at the conference is available online at http://www.veracast.com/webcasts/sbcitigroup/tech-2004/52312148.cfm

"As we re-engineer our whole delivery system by rationalizing service centers, building our own network to get greater utilization of data centers, etcetera, there's a whole host of things ... I think we've mentioned 15,000 to 20,000 incremental people will go out," he said. "Over the next two years there will be a lot of change at EDS. We said we're going to take 20 percent off our cost structure which is $3 billion out, and that's the way you do it."

Jordan's comments are in line with the company's overall efforts to reduce its costs over the next 24 months to 36 months, said Liz Bonet, an EDS spokeswoman. Regarding the projected job cuts, the numbers Jordan provided are an estimate, not a target, Bonet said. As such, this estimate could be modified and depends on how EDS' business transformation proceeds as it improves productivity and increases new-contract signings, Bonet said. EDS currently has about 120,000 employees, she said.
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http://www.infoworld.com/article/04/09/10/HNedscut_1.html

[HughBeaumont]

1. "turn the corner" = big fat brick wall

for the middle class.

Never, EVER ask execs to take a pay cut, BTW. It's the WORKER'S fault we cannot manage or generate revenue.

[POed_Ex_Repub]

2. Just listen to that economy humm!

Gee, what's that grinding noise?

[bleedingheart]

3. methinks they have seen the light of outsourcing to cheaper areas

"improving its capacity management, which involves the global consolidation of service-delivery facilities such as data centers and call centers. "

global consolidation to areas of cheap labor....that is what I think...you have to know how to read between the lines of corporate speak....

[lapfog_1]

6. EDS has been actively outsourcing for years

I think it's related to that "Giant Sucking Sound" that H. Ross used
to talk about, but I could be wrong.

[bleedingheart]

7. Yeah...Ole Perot..his company grew to like it very much....

[mhr]

4. Frodo, Oh Frodo - We Oh So Need Your Optimism Today

As you can see the sky is actually falling.

Please come tell us your sweet lies.

[prolesunited]

5. LOL!

Someone quick, activate the Frodo signal! :-)

[denverbill]

8. I think he's too busy debunking the Bush guard memos. n/t

[ProfessorGAC]

10. Not So Sweet

The Professor

[SoCalDem]

9. Eeeeek..My son works for EDS

:scared:

[Moderator]

11. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=814401