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

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.

  • Jerky_san
    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..
    Reply
  • curnel_D
    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.
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  • webbwbb
    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.
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  • curnel_D
    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.
    Reply
  • Brent_NC
    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.
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  • rhino13
    My dad used to run CA's anti-virus on all our machines.
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  • neiroatopelcc
    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.
    Reply
  • neiroatopelcc
    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.
    Reply
  • jellico
    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%.
    Reply
  • Brent_NC
    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.
    Reply