EDS announces massive job cuts

EDS announces massive job cuts

More than 6000 EDS employees in Australia face an uncertain future after the company announced it would axe up to 20,000 jobs worldwide within two years.

EDS Australia spokeswoman Sally Durant was unable to confirm local staff cuts or when the official restructure would begin.

"There is no immediate directive for Asia Pacific; it is all part of the transformation journey," she said.

The transformation which affects 120,000 employees worldwide was announced by EDS CEO Michael Jordan last week in a bid to slash running costs by $US3 billion.

The layoffs are in addition to the 5000 jobs already axed this year and are expected to take nearly 20 percent from the bottom line.

"Over the next two years there will be a lot of changes at EDS. We said we're going to take 20 percent off our cost structure and that's the way you do it," Jordan said.

According to US EDS spokeswoman Liza Bonet, EDS plans to lower costs through two other areas: improving its supply chain and purchasing process and secondly by improving capacity management through consolidating global service delivery facilities like data and call centres.

"Jordan's comments are in line with the company's overall efforts to reduce its costs over the next 24 to 36 months," Bonet said.

Responding to the announcement, EDS competitor IBM Australia boasted that the company is planning to hire an additional 15,000 employees worldwide due to increased demand for its products.

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