EDS May Cut 20,000 Jobs, CEO Says

Electronic Data Systems Corp., the world’s second-largest seller of computer services, may cut as many as 20,000 jobs, or 17% of its workforce, within the next three years, Chief Executive Michael Jordan said.

The Plano, Texas-based company has cut 5,000 positions this year, Jordan said at the Citigroup Smith Barney 2004 Technology Conference in New York. EDS employs about 120,000, a spokesman said.

The company will reduce jobs in part by closing data centers and adding technology that requires fewer jobs, Jordan said.

The reductions are part of an effort to slash costs 20%, or $3 billion, he said.

Shares of EDS rose 4 cents to $19.51 on the NYSE.