EDS shareholders approve HP deal; EDS shoots down layoff rumors

EDS shareholders approve HP deal; EDS shoots down layoff rumors

Summary: Updated throughout: EDS said Thursday that shareholders have approved the HP acquisition of the IT services company. Internally, rumors about impending layoffs at EDS are surfacing, but a company spokesman called the rumors "completely factually incorrect.

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Updated throughout: EDS said Thursday that shareholders have approved the HP acquisition of the IT services company. Internally, rumors about impending layoffs at EDS are surfacing, but a company spokesman called the rumors "completely factually incorrect."

According to a statement, 98.8 percent of EDS common stock was voted for the HP deal--that equates to 72.4 percent of the outstanding shares.

The HP purchase of EDS has been cleared by the European Commission and U.S. regulators. Pending clearance from other jurisdictions HP's purchase of EDS should close in the third quarter. Meanwhile, EDS and HP have settled five shareholder lawsuits following the merger announcement.

Also see: HP’s Hurd: U.S. demand ’spotty’; Data center, app consolidation continues

While all of this news is good from the corporate perspective, EDS employees have been skittish. Rumors on Wednesday began percolating among EDS technology managers that the company is planning on laying off 20 percent of its workforce across all hubs in the Americas. As noted previously EDS said the rumors are incorrect. On Wednesday, EDS said wouldn't comment on the rumors, but moved to squash them Thursday.

For now you can chalk this layoff chatter up to jitters over the impending HP merger.

Topics: Banking, CXO, Hewlett-Packard, IT Employment

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26 comments
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  • Please!!!!

    When was the last time HP acquired or merged with a major company in which they didnt lay off employees? May as well start passing out the canes and top hats to management as they attempt to lull employees into a false sense of security insuring them that there jobs are protected.
    KrUshPruF
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    Layoffs started an hour ago.
    notyouremailname
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    I understand about 2000 gone today. About 20 in my department.
    paperbag
  • Got to agree...

    Their denial of layoffs is kinda like when you were a kid and the doctor said "this won't hurt a bit."

    I can tell you as a former HP employee due to layoffs that Mark Hurd (CEO of HP) is well known for massive job cuts to improve the short term bottom line. IMHO, EDS managers are just trying to perform a little damage control beforehand.
    ExCorpGuy
  • Collusion

    Monday, EDS reports 2nd quarter earnings exceeding analyst's expectations and previous guidance. All seems well in Whoville. Thursday, EDS shareholders approve the HP "merger". In announcing the results of the shareholder vote to employees, CEO Ron Rittenmeyer reminds EDS employees that until the deal closes later in the third quarter, the companies must continue to operate independently. That very same day, layoffs begin at EDS. Is this an example of operating independently, or does that SEC rule only apply to the little people? Just saying...
    SilentButDeadly
    • EDS layoffs

      I was laid off for 'work force reduction' less than 8 hrs after the share holders meeting. So the 'continue to operate' phrase was just a way of making time for the big kill. I had a strong suspicion when they started posting "aloha" banners around the work area a few weeks back. Couldn't believe some were naive enough to think we were getting a party. Ha!!!
      oct50
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    check again, layoff started yesterday at most datacenters.
    cballinger@...
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    Hmmm. That would be consisted with EDS's lack of integrity on a lot of matters. I have my severance package in hand -- including being 'lifted' of part of my retirement 6 days short of a critical anniversary.
    Rotkapchen
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    As an EDS employee, I can tell you right now that the layoff rumors aren't rumors and are the bold truth. It's already happening as many friends have been laid off the past week. EDS sees that as the only way to improve costs is to layoff the hourly employees and give raises to the salaried.
    OneLowlyEDSer
    • Let's skip the hourly worker stuff

      Let's not throw in anything about EDS always picking on the poor hourly worker. The group I'm in is all pretty highly paid salaried people who have been with EDS for an average of 20 years. If you do the math on the number of people we lost and how many are in the group, we were hit harder than most groups. In certain groups one type of worker is going to be hit more than others. I've worked on too many account leadership teams with hourly workers where RIFs took place. Hourly workers have never been singled out over the salaried. Certainly not because they were hourly workers. It does seem like at the VP and higher level, there's only Golden Parachutes, but at normal human levels, I don't buy it.
      paperbag
      • Well...

        Granted the whole layoff picture is going to depend on which environment you're in. As a call-center, Winchester is going to see all of its cuts in the hourly agents on the floor. My project has less than 4th of the agents it did not that long ago, and most projects around us are the same. They just sacked half the agents on another project last week in fact. During all this time, they've laid off one sup, and she was probably the dumbest human being I've ever met, so it wasn't exactly a surprise. Being best friends with people above you can only get you so far if you can't perform I guess.

        We have plenty of other surplus supervisors imho, however, but none of them ever seem to get touched aside from the one incident mentioned above. They laugh and joke around, coming in whenever they feel like it and then dole out tardies for anyone below them for being even 1 min past their start time. They keep cutting us back and then blame us when our groups fail all of our client metrics for the month. They ignore the fact that they've only got 6 agents total to staff for the entire week to cover 6 clients between the hours of 7am and 8pm, and just disregard the fact that those agents are taking 60+ calls a day, with ATT of less than 5 min and ACW averaging maybe a minute a call...it's still our fault that our ASA's are twice or more than what they should be for July.

        All in all it just gets extremely frustrating, so it's a small wonder why everyone in my project is currently looking for other employment.

        So I apologize for having a slightly skewed opinion regarding salaried workers at EDS. I have only poor examples to derive my opinion from.
        OneLowlyEDSer
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    no layoffs?
    Really?
    Dang. I guess I get to go to work Monday after all!

    After 24 years I was RIF'd from EDS on 31JUL08.
    1/2 my team was walked out the door. (Only 4 people out of 8.)
    OLD EDS'er
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    This is true. Although the EDS director of Public Relations or whatever his title is denied layoffs, they started during the stockholders meeting. Can't be surprised however. This was Ron Rittenmeyer's plan from the begining. That's what he has done in the past at other company's. Unfortunately EDS is still feeling the pain of the miserable failure known as Dick Brown. Jabba Comb Over will walk away with Millions and leave the company in tatters.
    constantinesig
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    It makes me sick. Rittenmeyer and his cronies steal a collective $100 million in "severance", while thousands of hard working EDSers are kicked to the curb. Since they don't actually have to leave the company to collect, one can only assume this money is necessary to soothe their colossal egos for the indignity of going from executives of EDS Corporation to executives of EDS - an HP Company.
    SilentButDeadly
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    WRONG! My husband was one of the subjects of this lay off. His letter was dated when? July 31st 2008. They are so full of it, and families like ours suffer because of it.
    techmom2008
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    These are not rumors - I was laid off 7/31 after 23 years of service - I know of two other EDS'ers in my group who suffered the same fate. EDS should start telling the truth.
    justanotherstatistic
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    Those of you posting so far must not work in the New Jersey offices. We started getting layoffs regularly and every month since April, a week before news of the proposed merger was even publicly released. Since April my location in NJ has had at least 4 different rounds of layoffs... roughly one new round of layoffs every month... with a 5th round scheduled for the end of August and another one for December 31st. So for those of you who think the layoffs aren't really happening I'm here to tell you that they HAVE been happening... SINCE APRIL! As for EDS lying and telling everyone that there are no planned layoffs, can you honestly tell me that you believed for a second that they were telling the truth?
    mrmister2000
    • Waiting for the other shoe to drop

      Do you mind sharing what group you were with in NJ that is being hit so hard? We keep hearing new dates for the next round. Today, Aug. 21, was supposed to be a big day for more cuts, but haven't heard any news yet. Hard to stay focused when you don't know if you'll have a job tomorrow. I am very saddened to hear about your office being decimated. Darned bean counters!!!
      RoxyCO
      • Shoes are falling

        Aug 21 was a big day for cuts. Many lost their jobs yesterday. More to cut next week, by Labor Day we should get a reprieve until December. My HR manager told us that all the cutting should be completed by Labor Day and that the GM had more cutting to do next week but that should be the end of it for a couple of Months. She also said the HP factor could change those plans.

        There is another rumor going around that the merger will be completed by the end of next week. Has anyone else heard that?
        shakey in michigan
  • RE: EDS shareholders approve HP deal; EDS shoots down layoff rumors

    well, i don't want to say exactly what group i was in, but i will tell you that we were EHRO (for anyone not in the know, EHRO, or ExcellerateHRO, was what Towers Perrin became when EDS took us over 4 years ago). it was always nice to see the building management guy walking around the building to see whose work spaces were still "occupied" and whose desks were not... so that he could better move remaining people around... likely in an attempt to consolidate all of the now "free space" created by the continuous layoffs and then go and rent all that free space off to some other tennant i even heard they had been thinking of installing new walls/partitions within our office areas to create a whole new office area for some other company to move into and lease. always nice going into work every day and comparing who was there last month with who was no longer there this month.
    mrmister2000