EDS Confirms Offering Exit Option, More Layoffs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

EDS Confirms Offering Exit Option, More Layoffs

1:49 PM EST Wed., July 28, 1999

EDS Corp. on Wednesday said it was offering for the first time a companywide early retirementplan that could impact up to 8,000 of its U.S. employees.

Under terms of the option, workers that are at least 50 years old and fully vested in the company's retirement plan are eligible for the unified severance plan. Details of the plan were spelled out in a letter sent this week to eligible employees.

Up to half of those who are eligible are expected to "seriously consider" taking the exit option, said an EDS spokesman. The company presently employees 74,000 people in the United States and 126,000 worldwide.

EDS also said it plans to announce more layoffs by the end of the year, based on the number of people who opt for an early retirement exit.

The company also will eliminate a number of unprofitable programs within the consulting organization, although the spokesman declined to specify which ones. Closing these programs will result in a further reduction in workforce, real estate and capital equipment, the spokesman said.

This most recent move to cut costs follows a round of job cuts in April that affected about 5,200 of the company's employees, or roughly 4 percent of the worldwide workforce.

The decision to expand the early retirement option from a series of departmental programs to a companywide basis is part of an overall cost-reduction strategy put into play earlier this year by EDS Chairman and Chief Executive Richard Brown, who wants to slash up to $1 billion from an estimated $17 billion in yearly expenses.

However, even as EDS is slashing its worker ranks, it also is looking to hire people, mostly for its E-business and services activities. The professional services firm wants to keep pace with the rate of Web activity in the business sector and stay competitive in such areas as E-commerce and customer relationship management, the spokesman said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll