EDS' corporate communications manager, Asia-Pacific South, Brian Finn, said the services heavyweight was "not in a position to give a regional breakdown" of the cuts, part of a package of cost reduction measures outlined in the company's third-quarter financial results announcement.
A three to four per cent cut, which Brown said would be completed over the next "several quarters," would shrink EDS' 140,000-strong workforce globally by 4,200 to 5,600, well below previous indications from well-placed sources of cuts in the order of 15 per cent. The first 800-1,000 positions are to go by the end of the year.
EDS employs around 7,000 staff in Australia.
Finn said, however, the company was presently proceeding with the hiring of around 100 new staff for its South Australian solutions centre and had taken on around 70 to date.
Other global cost reduction measures include the trimming of corporate expenses by $US75 million in 2003, divestment of non-core, non-strategic assets for an expected return of $US500 million over the next six to eight months and shifting a minimum of 1,500 application development and client contact centre positions to "high-quality, low-cost" solutions centres next year.
Brown also reiterated a point made in a statement issued on 30 September that the reductions "would not affect service delivery to clients".
The company announced third-quarter 2002 earnings of 18 cents/share and net income of $US86 million, slightly above a revised guidance of 12-15 cents/share issued in September. The figure is still well down on previous Wall St earnings expectations.
Quoting DB - There is no sugarcoating these results. They are the byproduct of a very difficult market … and our own actions. Your management team and I accept full responsibility for our performance this quarter. We are acting swiftly and decisively to put EDS back on track to profitable growth.
Interesting that they take full responsibility for the performance, but they dont resign...they sack 5000 and 'relocate' other jobs to 'high quality - low cost' areas... I wonder what third world nation will get the honor?