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IT Software Vendor, CA, to Cut 1,000 Jobs

By - Source: Tom's Hardware US | B 34 comments

Software management company CA will lay off 1,000 employees before the fall.

A recent filing with the Securities and Exchange Commission revealed CA's plans to restructure and lay off roughly eight percent of its workforce. CA says the layoffs are part of its Fiscal 2010 Restructuring Plan and added that it will also be closing some of its facilities as part of the plan.

"These actions are intended to better align the company's cost structure with the skills and resources required to more effectively pursue opportunities in the marketplace and execute the company's long-term growth strategy," CA said Tuesday.

The software vendor said actions listed as part of the Fiscal 2010 Restructuring Plan are expected to be mostly completed by the end of the second quarter of fiscal 2011. As a result of the layoffs, the company expects to incur a pre-tax restructuring charge of approximately $50 million. This includes severance costs of about $47 million and global facilities consolidation costs of approximately $3 million.

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  • 16 Hide
    curnel_D , April 8, 2010 1:16 PM
    webbwbbIf they are spending $43 million on severance packages for 1,000 people that averages to $43,000 per person. I highly doubt that is for "call center grunts". It sounds closer to senior engineers.

    Or rather 5-10 Sr. board members/engineers who have offered to go under the ax for 2-3 million. And then another 990 call center dudes who will be lucky to get a CA coffee mug and a keychain out of the deal.
Other Comments
  • 3 Hide
    Jerky_san , April 8, 2010 1:04 PM
    Guess so much for those job postings that sky rocketed the stock market.. Oh wait the stock market only seems to jump at good news and avoids bad..
  • 9 Hide
    curnel_D , April 8, 2010 1:07 PM
    I'd imagine the first to go are call center grunts; guys who can barely manage to hold a phone and read directions off a computer screen at the same time. So I doubt it'll do much damage to the already failing IT job market.
  • Display all 34 comments.
  • 4 Hide
    webbwbb , April 8, 2010 1:12 PM
    If they are spending $43 million on severance packages for 1,000 people that averages to $43,000 per person. I highly doubt that is for "call center grunts". It sounds closer to senior engineers.
  • 16 Hide
    curnel_D , April 8, 2010 1:16 PM
    webbwbbIf they are spending $43 million on severance packages for 1,000 people that averages to $43,000 per person. I highly doubt that is for "call center grunts". It sounds closer to senior engineers.

    Or rather 5-10 Sr. board members/engineers who have offered to go under the ax for 2-3 million. And then another 990 call center dudes who will be lucky to get a CA coffee mug and a keychain out of the deal.
  • 3 Hide
    Brent_NC , April 8, 2010 1:18 PM

    We actually have a demo for one of their products coming up. I don't see us going with it in light of this. Sorry, but if you can't run your company without firing almost 10% of the workforce, then I don't want your product in mine.

    This shows poor planning and decision making skills and will most likely lead to piss poor product advancements and support. Yeah, let me just set my company up for that little bit of hell.

    No thanks.
  • -5 Hide
    rhino13 , April 8, 2010 1:59 PM
    My dad used to run CA's anti-virus on all our machines.
  • 1 Hide
    neiroatopelcc , April 8, 2010 2:12 PM
    I hope those 1000 jobs include ALL of the people responsible for making the etrust itm software. I don't know how such a big company can consequently manage to avoid making its software work. So glad our contract with em expired last year.
  • 3 Hide
    neiroatopelcc , April 8, 2010 2:12 PM
    rhino13My dad used to run CA's anti-virus on all our machines.

    It isn't antivirus, if it doesn't stop virusses. Etrust doesn't stop anything - merely informs you that it failed to do so if it sees fit to inform about anything at all.
  • 1 Hide
    jellico , April 8, 2010 2:15 PM
    Brent_NCWe actually have a demo for one of their products coming up. I don't see us going with it in light of this. Sorry, but if you can't run your company without firing almost 10% of the workforce, then I don't want your product in mine. This shows poor planning and decision making skills and will most likely lead to piss poor product advancements and support. Yeah, let me just set my company up for that little bit of hell. No thanks.

    You are not looking at this the right way. A company that streamlines its operations in order to remain solvent is a company that you do want to do business with. They will still around in 5 or 10 years. Companies that try everything they can to not lay people off, and who basically forget that they are in business to make money, are the ones that do not survive in times like these. And when that happens, EVERYONE loses their job, not just a select 8%.
  • 3 Hide
    Brent_NC , April 8, 2010 2:29 PM
    I see your point, just not too sure about that. We had another one of our vendors purchased by another company recently as part of a restructure type thing and since that occurred we have had nothing like the service we had before. Some of the top notch support we had was replaced with...well...I'm not sure, but its not near the top. Defects and change requests for the software seem to be ignored or failing to the wayside, the release schedule seems to be fluctuating and the last three patches actually broke more stuff than it addressed.

    I understand the need to run an efficient company, but I have seen too often when a company trims too far and hits the bone, the end user gets the shaft.
  • 1 Hide
    nforce4max , April 8, 2010 3:48 PM
    New jobs my hairy rear, there isn't nothing out there! This is what pisses me off they screw every one but management while giving them selves ever greater bonuses and perks.


    Mob rule and heads on sticks looks to be more like the future than any thing else.
  • 2 Hide
    njalterio , April 8, 2010 3:49 PM
    neiroatopelccIt isn't antivirus, if it doesn't stop virusses. Etrust doesn't stop anything - merely informs you that it failed to do so if it sees fit to inform about anything at all.


    Agreed. Etrust is just plain god awful. I've seen computers infect with all sorts of things and Etrust didn't detect or prevent anything. Amazing part is that the program somehow managed to use 100% of the processor on late Intel Pentium 4 and early dual core models.
  • 1 Hide
    officeguy , April 8, 2010 3:58 PM
    Quote:
    You are not looking at this the right way. A company that streamlines its operations in order to remain solvent is a company that you do want to do business with. They will still around in 5 or 10 years. Companies that try everything they can to not lay people off, and who basically forget that they are in business to make money, are the ones that do not survive in times like these. And when that happens, EVERYONE loses their job, not just a select 8%.


    Let me say this... you are not looking this at the right way. If the leadership is there then they shouldn't be laying off people (or very very few). It is the poor decisions that the top makes that makes layoffs happen. It is common practice now a days. In my opinion, there are very few true leader in the corp. world. I have very little faith in them. They also keep you in the dark until that day... "Hey by the way, pack your bags". I have seen many times, myself included and also people who had extensive knowledge in the products as well. I can almost bet that everyone can say they know of somebody that has been laid off. Can you tell I don't like Corp. American, lol. Not the company itself but the people!!
  • -1 Hide
    gm0n3y , April 8, 2010 4:03 PM
    Hmm, if anything it seems to me like the IT industry is picking up now that the recession is mostly over. I was able to find a new job a couple of months ago, within 1 week of starting to apply. And then after I got that job I got 4 or 5 callbacks from other companies I had applied to.
  • 0 Hide
    aford10 , April 8, 2010 4:51 PM
    With the right qulifications, there are a decent amount of IT jobs out there.
  • 2 Hide
    curnel_D , April 8, 2010 5:26 PM
    aford10With the right qulifications, there are a decent amount of IT jobs out there.

    If by the right qualifications you mean 15-20 years of experience, with every cert known to mankind, and a masters in electrical engineering to boot... sure.
  • 2 Hide
    curnel_D , April 8, 2010 5:28 PM
    gm0n3yHmm, if anything it seems to me like the IT industry is picking up now that the recession is mostly over. I was able to find a new job a couple of months ago, within 1 week of starting to apply. And then after I got that job I got 4 or 5 callbacks from other companies I had applied to.

    *shrug* Maybe it's just my area. Getting an IT job here is definitely a battle.
  • -1 Hide
    gm0n3y , April 8, 2010 5:33 PM
    I only have 7 years in the field and (equivalent to) a bachelor's in comp-sci, though the IT sector in my city is quite large.
  • 2 Hide
    yamagiru , April 8, 2010 6:52 PM
    The last three IT companies I have worked for have all dumped CA products completely. Over priced products with poor support, add the engineer who put in code in thier update to shut down everyones mainframes a few years back which affected companies in something like 30 countries.

    Complete utter incompetence!
  • 0 Hide
    aford10 , April 8, 2010 6:53 PM
    Quote:
    If by the right qualifications you mean 15-20 years of experience, with every cert known to mankind, and a masters in electrical engineering to boot... sure.


    Check out dice.com. There are lots of different IT job openings.
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