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  EDS has began its previously-announced internal reorganization, which is aimed at transforming the company's structure from divisions based on business lines to divisions based on the various stages of the sales cycle.
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In an internal EDS memo, obtained by The Dallas Morning News, CEO Michael Jordan told company employees the reorganization is designed to make the company more responsive to clients' needs.

“We are on a journey of significant and difficult change absolutely essential for EDS' survival,” the letter said. “There's time for us to come together as a team and transform our company into a winner. We have no time, however, to debate every point or waver on critical decisions.

“We know what we have to do and must get on with it.”

Mr Jordan said that technology would be EDS' main business once again, which will see A.T. Kearney and the product design software division left to fend for themselves, except for the occasional collaboration with EDS.

This a departure from EDS' previous strategy under former CEO Dick Brown, which saw A.T. Kearney and the software unit as an essential parts of the company's direction, using them to increase sales for EDS' core technology business.

According to EDS spokesman Sean Healy, cited by the newspaper, most of the company's 137,000 employees would not see any significant changes in their daily tasks because of the reorganization.
 
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