IT services giant Electronic Data Systems (EDS) is to cut 2,000
jobs that make up 1.4% of its workforce, due to a spending
slowdown.
Dick Brown, the company's chairman and chief executive, said the
job cuts were unrelated to the IT services provider's relationship
with WorldCom. "It's related to contracts, and some of our clients
have pulled back spending." The EDS layoffs will mostly affect
employees in North America.
The price of EDS' stock has dropped significantly since WorldCom
announced last week it had discovered billions in accounting
irregularities and that it would restate its financial results for
2001 and the first quarter of 2002.
EDS' stock (EDS) closed at $46.63 on 25 June, before WorldCom made
its announcement later that day. It has dropped steadily since
then, closing on 1 July at $30.45 and stood at $29.30, down 3.8%,
in mid-afternoon trading yesterday (2 July).
