EDS to cut up to 5,500 jobs

EDS to cut up to 5,500 jobs

Electronic Data Systems ended its 2002 third fiscal quarter with earnings and revenue that exceeded revised expectations, but fell way below original expectations for the quarter.

EDS also said it will reduce its workforce by 3 per cent to 4 per cent through layoffs and attrition in the coming quarters, as it struggles with sagging sales. The company currently has 138,000 employees worldwide, so a 4 per cent reduction would mean the loss of about 5,520 jobs.

The first wave of cuts will happen before the end of this year, when EDS, the world's second-largest provider of IT services, expects to eliminate between 800 and 1,000 jobs.

The company closed the quarter, which ended on September 30, with net income of $US86 million.

Revenue for the quarter came in at $US5.41 billion, within the revised range but below original expectations of between $5.8 billion and $5.9 billion.

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