CA to cut 1,000 jobs and close international plants

CA plans to shed around eight per cent of its workforce

Computer Associates (CA) has announced plans to cut 1,000 jobs, around eight per cent of its workforce, and has warned of tough times ahead.

The company said in a filing with the Securities and Exchange Commission that the move will cost around $50m (£33m) over the next quarter in severance payments and plant closures.

Precise details of where the cuts will be made have not been released, and CA told V3.co.uk that the company could not comment further.

"I recognise that the actions we are taking are difficult, but in the end they will make CA stronger and more competitive," chief executive Bill McCracken said in a memo to staff.

"We are taking the necessary steps to further align our organisations and skills with CA's strategy. The industry and the market are changing, and we have to change too."

The bulk of the cuts are thought to be in North America, and are likely to be made at some of the companies that CA has acquired this year, including Nimsoft in March and 3Tera in February.

CA also warned that profits would be at the low end of expectations. Shares in the company fell five per cent on the news.