450 jobs to go at CA worldwide

2 Apr 2003

The world’s fourth largest software company Computer Associates (CA) has announced it is to form a new company CA Technology Services with the combining of CA’s pre-sales technical and professional services organisations.

The restructuring move will result in the loss of 450 jobs at its operations worldwide and the company said it also expected to incur a first quarter charge of US$15m as a result.

CA, which employees around 16,000 people globally and 30 in Ireland said that – “staff eliminations would occur immediately in North America and will happen over the next several months in other parts of the world. Affected employees will receive enhanced severance packages including benefits continuation and outplacement services.”

The new unit will be headed by senior vice president and general manager Irishwoman Una O’Neill.

CA chairman and CEO Sanjay Kumar said: “Over the past two years we have been redefining everything about our business and clarifying roles and responsibilities in a way that clearly puts customers at the centre of everything we do.”

As part of the new charter of the organisation CA reaffirmed its previously announced strategy to focus its services offerings exclusively on support of CA solutions. The company added that it will continue to honour all existing customer engagements on non-CA solutions.

CA’s pre-sales technical teams work with customers to understand their business needs and develop a solution strategy for meeting those requirements. The company’s professional services teams facilitate implementation, monitor results and make recommendations to optimize the benefits of CA’s software.

O’Neill said: “Unifying these teams ensures the continuity of the technical care of our customers throughout the project lifestyle.”

In its third quarterly results published in January total revenue stood at US$778m up 4pc over the comparable period the previous year. Net loss for the third quarter was US$44m, compared to a loss of US$231m the same period the previous year.

CA was the subject of a federal investigation in the US into whether it improperly altered its financial results to produce US$1bn in stock awards for its top three executives in 1998.

Founded in 1976, New York-based Computer Associates has operations in 100 countries globally.

Speaking to siliconrepublic.com, a spokeswoman for the company said no decision had as yet been made on the fate of the 30 Irish jobs.

She added: “In the EMEA region, CA will work on a country-by-country basis to determine the scope and timing of any necessary reductions and will act in full accordance with the local employment laws, regulations. At this time we can not provide any additional information.”

By Suzanne Byrne