EDS to Cut 2,700 Jobs, Take Big Charge

June 18, 2003

NEW YORK (Reuters) - EDS Corp., the embattled No. 2 computer services company, on Wednesday said it would restructure operations, taking a charge of $425 million to $475 million and cutting 2 percent of its work force, or about 2,700 employees.
 
The Plano, Texas company also said that it expects earnings in the current quarter of 33 cents to 38 cents per share, excluding the restructuring charges and asset write-downs. It sees revenue of $5.4 billion to $5.6 billion in the current quarter.

The outlook also excludes the impact of a new accounting method which EDS plans to adopt on a cumulative basis as of Jan. 1, 2003. EDS said it is performing an analysis of the amount of the cumulative non-cash adjustment, which it expects to be material.

EDS also said it sees second-half 2003 earnings of 70 cents to 80 cents per share, excluding items, on revenue of approximately $11 billion.

EDS said it expects to raise approximately $250 million in cash from asset sales in 2003, and said it sees ending the year with $1.4 billion to $1.7 billion in cash on hand.

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