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, 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.
