by CIO Staff

CA to Cut 1,700 Jobs; Q1 2006 Earnings Plunge

News
Aug 15, 20061 min
IT Leadership

CA will cut about 1,700 jobs as it attempts to cut costs, after its net income fell 64 percent in its 2007 first quarter, which ended June 30.

The layoffs are part of a cost-reduction plan that also includes consolidation of facilities and other measures. The plan is expected to yield about US$200 million in annualized savings when completed toward the end of fiscal 2008, the Islandia, N.Y., company said Monday.

Revenue in 2007’s first quarter increased 3 percent to $956 million, while net income fell to $35 million, or $0.06 per share, from $97 million, or $0.16 per share, in last year’s first quarter.

CA blamed a 9 percent increase in expenses in the quarter on higher personnel costs from its recent acquisitions, among other things.

-Juan Carlos Perez, IDG News Service (Miami Bureau)

Related Link:

  • Sun Lays Off up to 5,000 Workers

Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.