EDS staff face a 5% cut to their salaries as the IT services
firm's owner, Hewlett-Packard, attempts to cut costs.
An employee at EDS, who wished to remain anonymous, said
permanent staff at EDS had been offered a 5% pay cut. He said EDS
staff have been told that if they don't accept it they will be
replaced by HP people.
"Project managers are running around with their heads on fire
because there are
experienced people leaving the company," added the source.
He said contractors have already been offered a 10% pay cut and
are now on a four-day week.
Computer Weekly put these points to HP.
It said, "EDS, an HP company, will continue to implement a
number of measures to transform its businesses. These measures will
drive efficiencies across the company to ensure it remains
competitive, aligned to company goals and objectives and continues
to deliver best value to its customers in the current economic
climate.
"All actions taken that impact employees are subject to
consultation with employee representatives that have been elected
by the employees. "
Last year
HP informed its staff European works councils that it would cut
9,300 jobs across the EMEA region over a two-year period.
These cuts form part of the plan to cut 7.5% of the global
workforce - 24,600 jobs - from HP's 320,000-strong workforce.