CA to cut 1,000 jobs

Software vendor wants to become "leaner and more efficient"

The software vendor announced it will cut eight per cent of its workforce

Enterprise software vendor CA has announced that it will cut 1,000 jobs – about eight per cent of its workforce – over the coming weeks.

The company said the job cuts are a “necessary step” in its restructuring plans to increase efficiency.

The job cuts will be made globally, but most will take place in North America. The company hopes to have cut most jobs by the end of April, and expects all job cuts to be completed by the end of the second quarter.

“We need to be leaner, more focused, more competitive and more effective in our execution,” said CEO Bill McCracken in a memo to CA employees. He added that he plans to visit CA’s major international offices over the coming weeks, to further explain the restructuring plans.

As part of the company's strategy, McCracken said it will invest in strategic acquisitions to help expand into emerging technologies and high-growth markets. CA will also consolidate an unspecified number of offices, which could include closures and location mergers.

The company expects to incur a $50m (£33m) pre-tax charge in the fourth quarter, of which $47m would be for severance payments. The rest will be related to facility consolidations.

“I recognise that the actions we’re taking are difficult. But in the end, they will make CA stronger and more competitive,” said McCracken.