The Channel logo

News

By | Kelly Fiveash 6th April 2010 14:29

CA to axe 1,000 jobs

Expects $50m in restructuring costs

CA is laying off 1,000 workers and expects to take a $50m hit in pre-tax charges relating to the jobs cull.

The business software maker said in a US Securities and Exchange Commission filing today that its board had approved the painful company rejig last week. The jobs will go by 2011.

The news sent CA shares down six per cent. The vendor said it expected to cough up $47m in severance pay and a further $3m in "global facilities consolidation costs", which will mainly hit CA's 2011 financial year.

"These actions are intended to better align the company’s cost structure with the skills and resources required to more effectively pursue opportunities in the marketplace and execute the company’s long-term growth strategy," said CA.

The firm said it now expected full-year adjusted earnings per share to be around the $1.60 mark, which is at the low end of its previous outlook.

Shares in CA were trading at $22.96 before Wall Street opened this morning. They closed at $23.85 on Nasdaq yesterday. ®

comment icon Read 12 comments on this article alert Send corrections

Opinion

euros_channel_money

Tim Worstall

Time to take a sniff at the coffee, perhaps
joe_tucci_emc_channel

Chris Mellor

Will they have to drag him back like last time?
chain_relationship_channel

Features

cloud_accounting
Playing the SLA long game
channel_teaser_money_top
cloud computing Fight
Applications must work for the cloud to float
Paul Cormier, Red Hat
How a Unix killer crawled from the dot-com bust