June 19, 2003 — (WEB HOST INDUSTRY REVIEW) — EDS (eds.com) announced Wednesday it will cut 2,700 jobs (two percent of its work force) and sell selected assets in an effort to save money.
EDS said the layoffs would save $230 million a year, and the sale of “nonstrategic” assets would raise about $250 million. The company did not say which assets it would sell.
The company also unveiled Wednesday its new strategic priorities under new chairman and CEO, Michael Jordan.
Under the plan, EDS will focus on stabilizing and growing its IT outsourcing business, invest in new outsourcing capabilities and services, and continue working towards strengthening its financial position.
“We’re taking steps to position EDS as the services provider of choice for business leaders looking to extract the highest returns on IT investments,” said Jordan.
In conjunction with the announcements, EDS also revealed plans for improving the cost competitiveness of its core IT outsourcing business.
