Something big in works at EDS: smaller paychecks

Parent company HP says aim is to bring EDS salaries into parity

Hewlett-Packard Co., the parent company of IT services firm EDS, has cut salaries for some EDS workers by more than 30%, media reports say.

The Dallas Morning News and the local NBC affiliate, near where EDS is headquartered in Plano, Texas, are reporting the news of pay cuts based on interviews with unidentified employees.

The cuts, which could be as high as 50% once previous wage cuts by HP are tallied, may affect longtime workers in particular.

HP isn't releasing any details of the size of the cuts or numbers of employees affected.

An HP representative issued a statement saying that the action is aimed at bringing EDS salaries in line with those at HP.

A project "was undertaken to ensure that employees in both EDS and HP, holding the same roles, receive comparable compensation based on market rates," HP said in the statement. "While pay will not be impacted for the majority of employees as a result of this process, some employees will receive pay reductions while others will benefit from salary increases. We understand that these changes personally impact our employees and we are working closely with them during this transition."

HP acquired EDS last fall for $13.9 billion. EDS employed 140,000 people at the time of the acquisition.

Many U.S. firms have cut wages over the last year, but there could be other factors influencing any decision to cut wages at EDS, in particular, competition from offshore vendors.

Prior to its acquisition, EDS had been shifting more of its workforce overseas. It's a step being taken by the major IT services firm as it attempts to compete with low-wage workforces in India and elsewhere.

In 2006, less than 15% of EDS's workforce was based offshore, but by March 2008, just a few months before the acquisition, the offshore workforce was about 30%, according to data from the Everest Group Inc.

HP announced a company-wide salary reduction in February. At that time, HP said the base pay of other members of its executive council would be cut by 15 percent, and that other executives would take 10 percent salary cuts. The base pay of salaried workers was reduced by 5 percent.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Patrick Thibodeau

Computerworld (US)
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?