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Hundreds of local CA jobs survive chopping block

Hundreds of local CA jobs survive chopping block

Enterprise software a strong performer

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Up to 600 Australian jobs have been saved from the chopping block in the immediate term as CA completes a massive restructure that involved axing 1700 staff across the globe.

Australia has managed to avoid the restructure which has swept through the United States and Europe consolidating stand-alone sites into regional offices as part of CA's strategy to achieve $US200 million in annualized savings by 2009.

A local CA spokesperson said there are no immediate plans to cut Australian jobs or bring the restructure Down Under despite the company's global CFO Nancy Cooper warning less efficient parts of CA will be targetted to improve worldwide operations.

"At this time there are no plans to restructure or make cuts to the Australian business, however CA is continually reviewing, refining, and improving its operations," the spokesperson said.

"CA Australia is one of the company's strongest performing global businesses."

According to Cooper, the company is systematically trying to go through the business to find inefficiencies, noting that CA has been moving its European operations from running on a per-country basis to a regional level.

Despite the huge staff cuts, CA Inc. expects to continue restructuring its operations, which is likely to result in further reductions in its headcount.

"We do anticipate some additional restructuring in fiscal 2008," Cooper said during a conference call with analysts to discuss the company's financial results for the fourth quarter of fiscal 2007.

During the quarter, which ended March 31, 2007, CA completed the cutting of 1,700 jobs first outlined in August. On its Web site, CA puts its total workforce as of March 31, 2006, at around 16,000.

CA plans to work in general terms on improving its international business, according to John Swainson, the company's president and CEO. In the fourth quarter of fiscal 2007, while total North American revenue rose 6 percent, revenue from CA's international operations fell by around 2 percent.

Swainson reiterated his oft-repeated belief that transformation at CA is "a multi-year process," but he added that the company has made progress on several fronts over the past two years, notably in boosting the productivity of its sales force to win more software and services business.

"There's clear evidence that customers and partners are seeing CA as a different company and someone they want to partner with," he said.

Swainson expects the vendor's business service optimization and enterprise systems management software operations to continue to perform strongly and for both its security and storage software businesses to rebound and begin to grow again.


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