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. ®