IT services and business software vendor CA has announced that it is to cut approximately 1,000 jobs, 7.5% of its global workforce, during its current financial year.
In a Securities and Exchange Commission filing, the New York-based firm said that it expects the $50 million charges incurred by the redundancies to impact on its fourth-quarter and full-year 2010 financial performances.
The restructuring programme will mostly be targeted at CA’s North American workforce, but will also effect other territories, CEO Bill McCracken wrote in a memo to employees.
"These actions are necessary to focus our skills and investments on those activities that support our corporate strategy and have the greatest impact on our performance, growth and customer loyalty," he added.
The announcement of job losses may come as something of a surprise as in its recent third quarter results, published in January, CA reported a 8% increase in total revenue to $1.13 billion alongside a 23.6% increase in net income to $257 million. At the time, the company forecast that its full-year revenues would be up as much as 4% to $4.4 billion.
CA has even announced two acquisitions recently, those of cloud-based systems management software provider 3Tera, for an undisclosed sum, and cloud monitoring vendor Nimsoft for $350 million. In September 2009 it acquired network monitoring software vendor NetQoS for $200 million.
However, the business’s professional services has suffered of late, posting a 20% fall in sales to $74 million, for the most recent quarter.