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EDS shows one in four staff the door

Early retirement for 12,000 US staff

By John Oates • Get more from this author

Posted in IT Channel, 13th September 2007 09:24 GMT

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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.®

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