CA Inc. will cut about 1,700 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 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 per cent 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 per cent increase in expenses in the quarter on higher personnel costs from its recent acquisitions, among other things.
