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.
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"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.