Computer Associates is to axe 800 jobs as part of a restructuring plan.
The company has announced first-quarter results showing that profits had more than doubled since the previous quarter’s poor results. CA is still coping with the legacy of financial and accounting scandals, which led to its former chief executive being ousted and charged by investigators.
In May, CA announced it would be forced to further modify its accounts for the past five years after finding new financial discrepancies in past contracts.
The cuts mean a 5 percent reduction in CA’s global workforce and are expected to be implemented by the end of the year. The company is also identifying opportunities to rationalise facilities and procurement. CA expects the restructuring to save $75m a year.
CA chief operating officer Jeff Clarke said: “As CA moves forward and further sharpens its market focus, we continuously evaluate our business to ensure we have the right people, processes and other investment strategies in place to take advantage of market opportunities that provide the strongest returns on invested capital to our shareholders.
“The changes we are making will enable CA to drive more efficiency and benefits from its resources, grow the business and generate even stronger bottom-line performance.”