EDS Considering More Layoffs.
The company announced a 2% layoff in June. Monday, in a FAQ section of a SEC filing addressing a stock options plan, EDS said: "We may reduce our workforce by more than 2% in connection with our ongoing transformation efforts or otherwise".
Since a change of management in March, the IT services firm has been considering selling off some non-core businesses and finding operating efficiencies, in order to reduce the perception that its business is unstable.
This perception was created by about $3bn is so-called "problem contracts" where margins were low or negative, as well as an ongoing regulatory investigation into accounting practices and a series of profit warnings.
Unveiling EDS's turnaround strategy in June, incoming CEO Mike Jordan suggested the company would build up its offshore resources to lower costs. The company has also since sold off units including its credit union business.
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|Article Type:||Brief Article|
|Date:||Aug 27, 2003|
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