CA Session at Cloud Expo

CA has looked into its crystal ball and now realizes that it might have been a tad ambitious in forecasting earnings of $1.60-$1.71 this fiscal year, pushing Wall Street to expect $1.69.

It'll probably come in on the low end of its guidance, it says, something Credit Suisse, for one, blames on expenses. So, apparently, does CA.

Therefore, in the name of "profitable growth" and efficiency, it's going to terminate a thousand people, about 8% of its global workforce, to right-size for its new cloud computing strategy.

The move will include consolidating more of its facilities to reduce real estate costs as well as further rationalizing its product portfolio.

CA said most of the cuts would be in North America and most people would know they're laid off by the end of April; the rest won't know until the end of September.

In a memo to employees Tuesday CEO Bill McCracken said, "We need to be leaner, more focused, more competitive and more effective in our execution....The industry and the market are changing, and we have to change, too."

The company expects to take a charge of $50 million, mostly to cover the redundancies.

CA has cut 3,100 people in the last three years and closed offices.