EDS reorganizes government group, cuts top-level jobs

Electronic Data Systems Corp. earlier this month revamped its Government Services Group and eliminated about 10 senior management positions as part of a restructuring that reflects changes in the way federal, state and local governments procure information technology services.

As part of the restructuring, EDS is consolidating into a new Government Industry Group separate business units that previously served military agencies, civilian federal agencies, and state and local governments, said George Newstrom, EDS' vice president.

The reorganization is designed to make the company more flexible and responsive to customers' needs, Newstrom said.

The Government Industry Group will be organized into nine functional areas as well as a sales and marketing department.

The nine areas are personnel management services, health care administration, financial systems services, logistics systems services, human services, security and intelligence systems, business systems services, integrated solutions and emerging markets.

This restructuring will make it easier for EDS' solutions to be shared globally by what were previously "stovepipe" vertical structures and EDS units, Newstrom said.

The senior executives whose jobs have been eliminated are being offered a chance to find other jobs within EDS or being offered a severance package if they choose to look for a job elsewhere, according to the company.

Al Edmonds, previously head of EDS' military unit, is the chief operating officer and senior vice president of the Government Industry Group. Chuck Girard has been named senior vice president of EDS' Government Consulting Services. Marketing will be consolidated under Louis Matrone, and sales will be consolidated under Val Lyons.

Kathy Torrence has been named senior vice president for diversity and human resources, with a special focus on recruiting, Newstrom said. Bill Dvoranchik will continue leading EDS' enterprisewide outsourcing facility in Connecticut.