The Channel logo

News

By | John Oates 13th September 2007 09:24

EDS shows one in four staff the door

Early retirement for 12,000 US staff

EDS is offering a quarter of its US staff early retirement as it seeks to move more and more of its operations to cheaper territories.

The outsourcing specialist is offering 12,000 people extra benefits if they take early retirement. Staff have until 30 October to accept or decline the offer.

EDS shares fell just over two per cent on the New York Stock Exchange.

According to a statement filed with the Securities and Exchange Commission EDS will offer the eligible staff an extra $10,000 and improved retirement benefits if they accept the offer. The company expects the job cuts to reduce next quarter's earnings by between $70m and $130m. Further costs after that will be paid by the EDS pension fund and have no impact on future earnings.

EDS employs 57,000 people in the US, 37,000 in Europe, the Middle East and Africa and 20,000 in Asia.

The SEC filing is available as a pdf here.®

comment icon Read 11 comments on this article alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world