EDS poised to slash Australian jobs

Stock hedging backfired, eh? Simple solution - trim the senior managers responsible for that and use those savings to offset some of the cuts to the EDS employees who actually do the work and really bring in the money for EDS.

Michael Crichton October 4th, 2002

This just figures! 3rd quarter projections not met - just slice off 15% of the workforce - NOT THE ANSWER. For EDS to lose 15% of it's workforce here in Australia would be cutting their own throats. Dick Brown and his flunkies should be taking huge pay/bonus/option cuts, not by killing off us slaves.

Paul Fraser October 4th, 2002

Get back to work! I fail to understand how you will be able to pay me my "minute" salary if you are out here on the net reading "stories". If your job is to be eliminated - tough! Take it like a man! Action, Urgency, Unemployment... Dick Brown

Dick Brown October 4th, 2002

Not so sure its a bad thing, especially in Adelaide without EDS there would probably be many more jobs as smaller companies compete to get the government contracts. And emploeeys of EDS who have the client knowledge should get a pretty nice salary. Those who took admin to joing the 50 levels of managment for each technician, may find it harder....damm shame that

Paul jansen October 4th, 2002

I need US $55 million per annum to keep my wife in the style she has become accustomed to.

How else do you expect me to make this sort of humble wage if I can't zap 15% of the worthless dogs working for me?

Action, Urgency, Stock Options !

Brown, Dick

Brown Dick October 5th, 2002

"Hedging backfired" ?

Hedging would be buying $60 puts last year (for a small $5 premium) which would now be worth $(60-current price) each - i.e. about $45- i.e. 900% profit.

Instead, it seems as though Hedging was not used- stock speculation used where the puts were sold - EDS keeps the premium $5, but now has to pay the put holder the $45 for a large loss.

Can reporters please do some research ? This is an example of poor strategy, and has *nothing* to do with hedging.

Rob October 7th, 2002

Thanks for the artical and incite into "what's to come".

This company has typically handled layoffs in the US, by forcing small numbers of people out in numerous locations keepting them under the radar of the "Warn Act" (see US Department of Labor law). By staying under the radar, the company is not required to have standards for severence pay. The numbers quoted in your article would not allow the company to remain "under the radar".

Just curious though, no references to these impending cuts can be found in the US press. How can I trust the validity of your article or do I have to wait for the "Straight Talk" to be given by the CEO on 10/15/02 for validation?

Regards,

A Concerned US EDS Employee

Concerned US EDS Employee October 8th, 2002

EDS workers work hard, Dick Brown and his thugs profit. Dick Brown and his thugs screw up (tremendously I might add,) EDS workers pay the cost. When will this scumbag go?

iamveryboring October 8th, 2002

EDS has gone through many dramatic changes over the last few years. One of the biggest has been a focus on performance management. Dick Brown has set the direction of enforcing pay for performance. So I wonder how much of his 55 Million dolloar bonus he is going to give back? Do you know how many employee's jobs could have been saved last year for $55 million?

Dick, how much is enough? We in the states, always complain about over paid athletes. I think we need to add overpaid CEO's to that group too. If I did something to screw up on the scale that Dick Brown did, how long do you think I would have been allowed to stay around? My desk would have been packed before I got back to it and escorted out of the building.

I bet everyone misses Les Alberthal now!

15 Year Vet October 9th, 2002

Actually, I'm amazed that EDS is still in business at all, and EDSers who are still there can count themselves lucky that the marketplace doesn't understand just how badly that Company is managed. They cut staff to the point where they can no longer provide contracted services and their management is so rife with political infighting that they are impotent to accomplish anything .... Essentially, Dick Brown is in this to feather his own nest - he doesn't realize that the loyalty he expects from his people must work both ways - he must truly believe his employees are stupid (they are not!). Herr Brown is either fundamentally stupid himself, or he doesn't give a flying whatever about the success of EDS, its customers, or employees - His nest is feathered, whatever the outcome!

Happytobe Ex-EDSer October 9th, 2002

Dick Brown and his staff probably think that it is managers who does the work. At several sites, in the US, the manager to employees ratio is 1:4.
What else do you expect?

From all the jobcuts at EDS, it is the employees who were asked to leave NOT the manager. Plano office is full of such "managers."

Does Dick and his immediate team ever think about that? I guess not. EDS is another Enron in the making. Only if SEC acts fast will the true EDS be revealed.

Dick and Family October 9th, 2002

Amazing how many people blame the driver for the bumps, when the 'road conditions' are out of his control!! ... how many back seat drivers were there when the economy was solid? - NONE! Remember folks, EDS has been victimized by over-reactions of analysts, other corporation's wrong doings, and general economic instability. If there are to be layoffs, I would be willing to bet it WILL be geared towards those not customer-facing. This management team (contrary to those who stop rowing when the waves get a little big) are not idiots! Put your oars back in the water, or don your lifejacket and get out of the boat!

5 year 'veteran' October 9th, 2002

Dear Mr "Amazing How People Blame",
Obviously you are a manager............ nice nautical theme you have going there, but you might want to grab your life jacket, because you are about to drown with the rest of us!!! I don't know why you think EDS cares about you. Get over yourself buddy. Everybody else is "treading water" while you are in Butterfly and Unicorn land. I bet you just recently graduated from your Manager's Class, because (hehehehe) you apparently bought all that crap!! I think you are missing the point here, we all DO have our oars in the water and we are rowing like mad!!! As a matter of fact we are each rowing about 5 or 6 sets of oars. There are rowing seats here for 3 times as many people in this boat for a reason!! I'd bet you heard that metaphore in your Managment Class too. Because you couldn't possibly be the slightest bit creative. I mean, YOU'RE A MANAGER FOR GOD'S SAKE!!

Urbraken Mabakk October 11th, 2002

This article has created quite a stir in the States. Postings of the link and information contained have been deleted by the moderator of the internal message boards. EDS has gone as far as saying that the article is LIES and they have contacted ZDNet to set the record straight. I have yet to see a retraction.... I wonder how these cuts have been hidden from the American media????

TJ October 11th, 2002

PR>Amazing how many people blame the driver for PR>the bumps, when the 'road conditions' are out PR>of his control!!

Maybe the other drivers don’t have expensive wives? The senior management took a stupid risk with their own
Stock and as per usual it will be the people that actually DO THE WORK that will pay for it.


PR> ... how many back seat drivers were there PR>when >the economy was solid? - NONE! Remember PR>folks, >EDS has been victimized by over-PR>reactions of analysts, other corporation's PR>wrong doings, and general economic instability.

Funny how IBM or GE hasn’t been hit with the same problems to the degree we have.

PR>If there are to be layoffs, I would be willing PR>to bet it WILL be geared towards those not PR>customer-facing.

Going to bet your own job on that one? I bet that I will be doing another three peoples work and probably pulling
In a couple of thousand and hour from clients who think they get their own support person for all the money they throw at us. In reality there is usually one maybe two looking after 5-6 accounts.

PR>This management team (contrary to those who PR>stop rowing when the waves get a little big) PR>are not idiots! Put your oars back in the PR>water, or don your lifejacket and get out of PR>the boat!

Like has been said previously we are rowing our arses of, for what I am not sure, apart from funding Mr Brown’s next plane trip.

Action Urgency Executive Perks!

James T Kirk October 12th, 2002

Dear Urbraken Mabakk,

Since when is it that only managers can have positive attitudes? Why would you assume I am a manager? I'm a bottom of the ladder delivery guy - 5 year 'veteran' remember - just a little more realistic than some I guess. I happen to think EDS cares about me because they pay me a salary, provide a pension and great benefits, culture (well, you may not know what that means - and no, it's not a 'management word'), and quite simply, a job. You feeling bad about yourself because you may not get rich from stock options this year? Need someone to blame because the economy sucks? Get real. Call up the analysts on Wall Street, blame them for over-reaction. Don't drag us all down any further, thanks.

5 year 'veteran' October 16th, 2002

5 year Veteran: You, apparently have been brain washed. Very Few corporations really care about thier employees, and I have a sister working at EDS who informed me yesterday of "massive layoffs" and she is SCARED. You have apparently bought a huge load of EDS crap, and from what i hear (metaphors and all) you are clueless! Everyone here is entitled to their opinion and you just enjoy your ride, bumps and all! Let Dick do the driving!!!

CasualObserver October 31st, 2002