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