EDS to Take $400MM Hit, Lay Off 2,700

Computer services giant Electronic Data Systems Corp., the corporate parent of mortgage servicing and outsourcing businesses in the United States and Europe, has announced that it will take a charge in excess of $400 million and cut some 2,700 employees worldwide.In a June 18 conference with analysts, EDS chairman and chief executive Mike Jordan outlined plans "to refocus the company and renew the value it places on its people." An EDS spokesman said it was unclear what if any implications the restructuring would have for the company's mortgage-related business lines, which include the Greensboro, N.C.-based servicer Wendover Financial Services Corp. and EDS Credit Services, which offers third-party loan administration services in the United Kingdom. Specifics of which portions of the company will be affected by the layoffs will "unfold … over time," the spokesman said. The company has indicated that it plans to focus on its core information technology outsourcing business in the restructuring, making it appear unlikely that it will cut very heavily, if at all, in that area.