CA to lay off about 1700 as earnings plunge in Q1

CA to lay off about 1700 as earnings plunge in Q1

CA will ax about 1,700 jobs to cut costs, as its Q1 net income fell 64 percent.

CA will cut about 1700 jobs as it attempts to cut costs, after its net income fell 64 per cent 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 $US200 million in annualised 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 per cent to $US956 million, while net income fell to $US35 million, or $US0.06 per share, from $US97 million, or $US0.16 per share, in last year's first quarter.

CA blamed a 9 per cent increase in expenses in the quarter on higher personnel costs from its recent acquisitions, among other things.

A local spokesperson said the local implications of the staff cuts had not yet been confirmed.

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