CA to cut 1,000 jobs; Cuts profit outlook
CA said Tuesday that it will cut 1,000 jobs as it consolidates facilities under a restructuring plan. The company also said its earnings for the fiscal year will be at the low end of its previously issued outlook.
The company said in an SEC filing that it will take a charge of $50 million, with $20 million to $25 million of that sum related to real estate and other costs.
CA's outlook called for non-GAAP earnings growth of 7 percent to 15 percent, or $1.60 a share to $1.71 a share. Now CA will come in closer to that $1.60 a share mark. Wall Street was expecting CA to report earnings of $1.69 a share. GAAP earnings are expected to be $1.46 a share to $1.57 a share.
The news comes as CA has been busy gobbling up cloud computing companies.
To wit:
- CA acquires Nimsoft for $350 million; Eyes smaller enterprises
- Welcome to the cloud market, CA
- CA adds to cloud portfolio, buys 3Tera
- CA buys Oblicore; Eyes cloud service levels
Indeed, Deutsche Bank analyst Todd Raker said in a research note:
CA is re-positioning its priorities around its growth pillars of IaaS (infrastructure as a service) management, virtualization and the cloud. As a result, CA is rationalizing its workforce.