However, the Plano, Texas-based company hinted that it may make additional headcount reductions to the 5,200 announced last October, in order to meet its target of cutting costs by 25% in three years.

Jordan, who joined EDS in March 2003 following the departure of his predecessor Dick Brown, was quoted by the Associated Press as saying: I think there are always more opportunities to generate productivity in any major company, so there will probably be further reductions, but as we get more business, more jobs. However, he added that there would be no further big-bang large-scale workforce cuts.

During Jordan’s brief tenure at EDS, the company’s share price has risen 68% to $24.30. But EDS is not out of the woods yet. It remains the subject of a Securities and Exchange Commission investigation, and has recently lost out on bids for billion-dollar outsourcing deals with the UK National Health Service and the Inland Revenue department, suggesting that its reign as the UK government’s favorite IT services supplier may be at an end.

One of the contributors to EDS’s recent problems was the $6.7bn it spent to build a communications network for the US Navy, which has proved to be a drain on EDS’s cash resources. Jordan said that EDS is currently in discussions with the Navy over recouping some of its past costs.

Jordan, who is 67, said he expects to stay at EDS through 2005, but acknowledged that the company is looking at a succession plan. The company has announced a string of new senior management recruits, the latest of whom is Ron Vargo, who joins the company as vice president and treasurer, having previously held the same role at engineering giant TRW Inc.

EDS said it sees growing demand for business process outsourcing engagements in both the US and Europe, and is also preparing the groundwork for defending one of its largest accounts. Former parent organization General Motors is expected to decide next year on whether to extend a contract with EDS worth an estimated $1.5bn annually.

This article is based on material originally published by ComputerWire