Business software company CA Inc. said Tuesday that it is cutting 1,000 jobs — or about 8 percent of its work force — and consolidating offices as part of a restructuring plan to reduce costs and become more efficient.
p
The company also steered earnings expectations to the lower end of its previous guidance for the year.
p
I recognize that the actions we’re taking are difficult. But in the end, they will make CA stronger and more competitive, CEO Bill McCracken said in a memo to employees Tuesday.
p
The job cuts will occur mainly in North America and mostly be completed by the end of September, according to a filing with the Securities and Exchange Commission.
p
The Islandia, New York, company has already shed 3,100 positions over the last three years amid office closings.
p
The reductions are part of CA’s efforts to mold the company to better fit its new business strategy of focusing on emerging technologies and high-growth markets. A key area of interest is cloud computing, where it would handle software and data storage for corporate clients off-site.
p
We are taking the necessary steps to further align our organizations and skills with CA’s strategy, McCracken said. The industry and the market are changing, and we have to change, too.
p
CA will be consolidating an unspecified number of offices, which could include closings, reductions in office space and merging of locations.
p
The company expects to incur a $50 million pre-tax charge in the fourth quarter, of which $47 million would be for severance payments and the rest related to facility consolidations.
p
CA also said full-year earnings will come in at the lower end of the range it had previously given. It expected to earn $1.60 per share to $1.71 per share for the year, excluding one-time items. Analysts polled by Thomson Reuters were expecting $1.69 per share, on average.