Computer Associates International Inc. (CA) is cutting 900 jobs, or 5 percent of its workforce, worldwide across all areas of the company. The cuts are effective immediately, CA said Thursday.
The job cuts "reflect the complex realities" faced by CA and other companies and also will make the staff "more appropriately geared to the new business model" the company announced last year, President and Chief Executive Officer Sanjay Kumar said in a statement.
CA is offering a severance package to affected employees. All will be paid through the end of this month with full benefits, after which additional severance pay of two weeks per year of service, with no maximum limit, will kick in. Family health benefit coverage also will continue for up to six months starting Nov. 1. Company child-care facilities may be used by laid-off employees for up to 60 days, except for kindergarten children, who may finish the school year in the CA program.
Additionally, tuition reimbursement and the matching charitable gifts program will be continued, although the time frame was not specified. Career consulting, training and coaching to help workers find new jobs as quickly as possible also will be offered. Family health benefits will be continued for those who go to work for charitable organizations, CA said.
The severance package will cost up to US$20 million during the quarter that ends Dec. 31. The company will report its next financial results after the market closes Oct. 18 for the quarter ending Sept. 30.