CA Technologies has revealed plans to cut 1,200 jobs on the back of a four percent drop in revenue, although profits at the firm are on the up.
CA’s annual revenue for fiscal year 2013 was $4.64bn, compared to $4.81bn for the previous year. Fourth quarter revenue dropped by three percent, from $1.18bn in Q4 12 to $1.15bn in the most recent quarter. However, despite the drop in sales, earnings increased across the board.
Fiscal 2014 earnings will be $2.35 to $2.43 a share, below analyst estimates of $2.54 on average, according to data compiled by Bloomberg.
On announcing its latest results, CA also revealed it will be cutting around 1,200 staff worldwide, which will cost the business $150m in its fiscal year 2014, along with centralising development hubs. The staff cuts are due to be completed by the end of the first quarter of fiscal year 2014, but some of these staff will be replaced with new employees who will “enable the company to better focus its resources on priority products and market segments”, CA noted.
CA declined to share information on how many positions will be affected in the UK. “We are not releasing information on specific locations as we are beginning the process and are in the process of notifying employees and affected sites. The number of employees affected will be approximately 1,200 and the impact will be global,” the firm told V3.
CA was also unable to give data on UK revenue and profits, as the firm does not break out performance at a country level. CA chief executive Mike Gregoire said that the firm is aware it can improve new sales and revenue performance, with a focus on product innovation, customer relationships and new customer adoption.
At the CA World user event in Las Vegas, Gregoire outlined his plans for overhauling the firm and making it more relevant for the cloud and mobile era, including requiring CA customers to upgrade to the latest versions of software, and signing a deal with SAP to license its Afaria technology for mobile device management.
CA shares dropped by seven percent to $25.77 on the results announcement, but were back to $27 at the time of writing.
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