The closure of Compuware's software development operations in Sydney will impact a total of 33 local staff.
Earlier today the company announced plans to further centralise product development to its Detroit headquarters in the United States in a bid to reduce annual operating costs by $US13 million.
A company spokesperson has confirmed that development of the Vantage Service Manager product will no longer be undertaken in Sydney, effectively eliminating 26 jobs.
All of the positions are software development roles.
The spokesperson said seven staff will be relocated to Compuware's facilities in Sydney's North Ryde while the remainder will leave the company.
Compuware is also shutting down product development in Cambridge, Massachusetts and Dublin, Ireland.
In total 100 jobs will be abolished.
The company's chief information officer, Chris Bockhausen, said the centralisation of Compuware IT service management, application delivery management and mainframe expertise will strengthen technical integration, incrase synergy in development and deliver additional efficiencies in the business.
In a statement, he said: "The company will continue to invest significantly in the technical excellence of these strategic solutions and will maintain superior levels of support for all Compuware customers, during and after this transition."
The Vantage product which was developed in Sydney was Compuware's flagship management software which helped IT managers determine the root cause of poorly performing applications.
The upgraded Vantage 10 software, which was released in April this year, combined .Net and Java application analytics as well as deliver metrics on VoIP applications.
Compuware competes with software tools from Mercury Interactive.