CA to cut 1,000 jobs and close international plants

Computer Associates (CA) has announced plans to cut 1,000 jobs, around 8 percent of its workforce, and has warned of tough times ahead.

In a filing to the US Securities and Exchange Commission, CA said that the move would cost around US$50million (A$53.9 million) over the next quarter in severance payments and plant closure costs.

The precise details of where the cuts will be made hasn’t been released and CA said that the company would not comment further.

"I recognise that the actions we're taking are difficult. But in the end, they will make CA stronger and more competitive," CEO Bill McCracken said in a memo to employees.

"We are taking the necessary steps to further align our organisations and skills with CA's strategy," McCracken said. "The industry and the market are changing, and we have to change, too."

The bulk of the cuts are thought to be in the North American market and are likely to be made in some of the companies that CA has acquired over the last year.

CA also warned that profits would be at the low end of expectations. Shares in the company fell over 5 percent at the news.