Profits dip prompts CA move to axe 1,700


Profits dip prompts CA move to axe 1,700

Tash Shifrin

IT management software firm CA is to axe 1,700 jobs – more than 10% of its total workforce, after a sharp fall in first quarter profits.

Rumours earlier this month suggested the troubled firm would cut 1,000 jobs, following 800 redundancies announced last year in a bid to cut operating costs.

CA has now posted first quarter results showing a 64% fall in profits to $35m (£18m), down from $97m in the same quarter last year.

Chief executive John Swainson said, “We are not satisfied with our cost structure and we are implementing an expense reduction plan to improve the company’s efficiency and competitive position. These are the first steps in a long-term program to achieve a best-of-breed cost structure.”

The job cuts are set to incur about $200m in charges, mainly over the next two financial quarters.

CA has yet to recover from the $2.2bn (£1.2bn) accounting fraud in 2004 that saw former chief executive Sanjay Kumar and former head of sales Stephen Richards plead guilty to fraud, perjury and obstruction of justice charges.

Earlier this month, CA filed its delayed 2006 financial report with the US Securities and Exchange Commission. The results had been expected in May, but were held up after the company uncovered accounting errors. The filing also saw CA restate its results for previous years.

Vote for your IT greats

Who have been the most influential people in IT in the past 40 years? The greatest organisations? The best hardware and software technologies? As part of Computer Weekly’s 40th anniversary celebrations, we are asking our readers who and what has really made a difference?

Vote now at:

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy