CA is tightening its belt. In a filing with the Securities and Exchange Commission, the software development shop offered some gloomy news, saying that it’s planning to lay off 1,000 employees, close facilities and report earnings toward the low end of its guidance.
Ouch. Word of the restructuring comes after the company reported healthy sales and earnings in the last quarter, but fresh on the heels of a CEO change, it’s now looking to prune about 8 percent of its workforce.
Datamation has the story on CA’s rather abrupt change of course.
Software developer CA will eliminate 1,000 jobs, shutter some of its facilities and deliver full-year earnings at the bottom of its previous guidance, according to its latest filing with the Securities and Exchange Commission.
CA (NASDAQ: CA), which recently named William McCracken to replace John Swainson as its CEO, posted solid sales and earnings in its most recent quarter and reiterated its profit estimates for the fiscal year.
Apparently things have changed and changed quickly.
The restructuring move, which calls for the reduction of about 8 percent of its workforce and “additional global facilities consolidations,” will result in a $50 million pre-tax charge, with roughly $47 million allocated for severance payments.