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By Paula Musich  |  Posted 2004-09-27 Print this article Print
 
 
 
 
 
 
 


As for executive changes, Cron said, "Change will continue at CA. We are committed to strengthening the management team."

CA will take additional steps to ensure its accounting practices comply with its agreement, including the appointment of a chief accounting officer, the appointment of two additional independent directors to its board and the creation of a compliance committee on the board.

At the same time, CA is looking to cut costs, including with layoffs that sources say could come as early as next week. At least 1,000 jobs are expected to be cut, according to several sources, some of whom believe it could be double that figure.

For more on the layoffs, click here. "Look at the revenue. A normal software company is in the $300,000- to $400,000-per-employee range. CA is nowhere near that. Theyre more like $200,000. They have to either grow revenue or cut people," said a former CA executive, who asked not to be named.

Although some issues remain unresolved, other CA customers are more sanguine about CAs future.

"I still get the proper support when I have tech-support issues," said Jay Levitan, technical services engineer at College of the Holy Cross, in Worcester, Mass. "Im confident they will choose the right person in time."

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