Sep 12, 2007 6:12 pm US/Central
EDS Offers Early Retirement To 12,000 Workers
PLANO (AP) ―
Electronic Data Systems Corp. said Wednesday it has offered extra retirement benefits to about 12,000 U.S. employees if they will leave the technology-outsourcing company.
EDS expects the offer to result in a charge against fourth-quarter earnings of $70 million to $130 million, the company said in a filing with the Securities and Exchange Commission.
The company said the charge was not reflected in earlier earnings guidance. Because the offer will be funded almost entirely from the company retirement plan, EDS said it would not affect cash flow.
EDS said the company board approved the early-retirement offer on Friday and employees were told about it Tuesday. They have until Oct. 30 to accept.
Employees who accept the buyout would get an additional $10,000 from the retirement plan and extra credits to their retirement account, EDS said in the filing.
EDS went through a round of 5,000 job cuts starting in 2003, and the following year, the chief executive announced that the company would shed another 20,000 jobs.
While cutting jobs in the United States and Europe, EDS has been adding workers in low-cost countries, chiefly India, where it has 20,000 workers.
An EDS spokeswoman said the company has 136,000 employees, including 35,000 in low-cost countries. It expects to have 45,000 in low-cost nations next year.
Shares of EDS rose 7 cents, or 5.2 percent, to $1.40 Wednesday.
(© 2007 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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