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EDS Considering More Layoffs.

Electronic Data Systems Corp is looking at areas it could cut staff over and above the 2,700 people it has already said it would lay off, a filing the company made with the US Securities and Exchange Commission revealed this week.

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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Publication:Computergram International
Article Type:Brief Article
Geographic Code:1USA
Date:Aug 27, 2003
Words:186
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