CA to lay off about 1,700
Q1 earnings plunge prompts employee cut-backs as well as consolidation of facilities
Follow @infoworldCA Inc. will cut about 1,700 jobs as it attempts to cut costs, after its net income fell 64 percent in its 2007 first quarter, 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 towards the end of fiscal year 2008, the Islandia, New York, 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 nine-percent increase in expenses in the quarter on higher personnel costs from its recent acquisitions, among other things.
