New York, June 19: Electronic Data Systems Corp. on Wednesday said it will cut 2,700 jobs, or 2 per cent of its workforce, as new management returns the computer services company to its 40-year-old roots of managing technology for clients. EDS shares rose nearly 8 per cent as investors took heart from newly appointed chief executive Michael Jordan's efforts to tackle the company's woes. A sharp decline in new services contracts, mounting debt and a Securities and Exchange Commission inquiry have rattled investors for the past year.

The good cheer lasted even as EDS told analysts in New York that second-half profits would fall short of Wall Street's expectations. Revenue, however, would be in line with analyst hopes and results for the current quarter will be in line with forecasts, it said.

"The perception that EDS is not going to be here in the long term, it ain't true," Jordan said at a meeting with analysts. "Today our intention is to kill that issue."
EDS, second only to International Business Machines Corp. in computer services consulting, said it would cut about 2,700 employees and plans to take a second-quarter charge of $425 million to $475 million to cover the costs. Bureau Report