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Computer Associates International Inc. yesterday said that it will cut 900 jobs across the company to keep costs in line with the business model it put in place a year ago.
The cuts represent about five percent of the Islandia, N.Y., companys workforce, which will be about 17,000 after the cuts.
After being stung earlier this year by criticism from former employees in the way it handled that layoff, CA this time has put in place a severance package that includes extended salary, extra severance pay and enhanced benefits that CA will cover.
More specifically, CA will pay those affected at full salary and benefits through the end of the month, pay an additional two weeks of salary for every year of service starting November 1—with no limit—and extend family health insurance coverage out six months.
CA will also make its childcare facilities available for another 60 days and extend its tuition reimbursement and matching charitable gift program for those employees affected by the layoff.
The cost of the severance program, which will be accounted for in the quarter ending December 31, will be $20 million.
CA is expected to meet its earnings projections outlined for Wall Street for the quarter that just ended, Sept. 30. Earnings will be announced October 18.