310 NMCI workers let go

310 NMCI workers let go

Electronic Data Systems Corp. has laid off 10 percent of its Navy-Marine Corps Intranet Strike Force workers as a cost-saving measure.

Company officials said the move was prompted by the month-long impasse between the Navy and Defense Department over testing and the tedious process of consolidating legacy applications. Defense and Navy officials agreed to a compromise earlier this month on how components of NMCI would be tested before implementation continued.

Kevin Clarke, a spokesman for EDS, said the decision, made last week, to lay off or redeploy 310 of the strike force's 3,100 workers is temporary and consistent with contract requirements. Clarke said that when EDS begins adding more seats to NMCI, expected late this year or early next year, the company will likely hire back at least some of the affected workers.

'Throughout the life of this program, we will continually adjust the resource level to match the level of the contract,' Clarke said. 'That's part of the value of the NMCI contract for the Department of the Navy.'

The layoffs included both EDS workers and those of subcontractors, Clarke said.

Navy officials said the layoffs were not an indication of any significant problems with the NMCI project.

NMCI is a $6.9 billion outsourcing initiative that will consolidate 360,000 users on 200 Navy and Marine Corps networks into one Navy Department intranet.

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