CA president and chief executive officer, Sanjay Kumar said the move "reflects the complex realities that our company and many other companies are faced with today." He also claimed this move would keep CA in line with its new business model.
"We can do more with less because the business is more evenly distributed," said a company spokeswoman.
CA has already changed key business practices. The company now allows customers to create more flexible contracts with monthly, quarterly or annual renewals. Contracts are now accounted for on a monthly, incremental basis rather than as a lump sum.
"Our products and new business model continue to be well regarded by our customers and the marketplace," Kumar stated.
CA's severance packages will include extended salary and benefits, which are estimated to cost the company $20m (£13.8m) for the current quarter.