Computer services company EDS said today it would restructure operations, taking a charge of $425 million to $475 million and cutting 2 per cent of its work force, or about 2,700 employees.
The restructuring follows the appointment of a new chairman and chief executive, Mr Michael Jordan, earlier this year.
EDS said that a change in the way the company accounts for long-term contracts will reduce the company's net worth by between $600 million and $1.8 billion.
The 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.