CA cuts 1,700 jobs, as earnings tumble

Software firm CA is cutting 1,700 jobs and consolidating some of its global facilities after the software vendor’s net income dropped 64% in the first quarter of its 2007 fiscal year.

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By  Dylan Bowman Published  August 20, 2006

Software firm CA is cutting 1,700 jobs and consolidating some of its global facilities after the software vendor’s net income dropped 64% in the first quarter of its 2007 fiscal year. Net earnings tumbled from US$97million to just US$35million for the same period this year, despite an increase in total revenue of US$29million, due to an increase in operating expenses, the firm said. The cuts are to bring expenses in line with revenue and CA hopes to make around US$200million in annual savings when the restructuring is completed by the end of its 2008 fiscal year. “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,” said John Swainson, CA president and CEO. CA said it would be initiating other cost-saving programmes during the course of its financial year, including the tighter control of travel and a reduction in the use of consultants.

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