Thread regarding CA Technologies (CA Inc.) layoffs

The difference as I see it is that (1) there were some people who seemed pretty untouchable under CA leadership and (2) as long as the company was hitting its cash and expense targets no layoff acceleration happened. Now there are no "golden" people and the expense trimming targets are going to be raised. As a previous person said it's ironic that CA is getting a dose of its own medicine now.

@U6mYDp2-1tuz

So how is this any different from what is already happening at CA?

Layoffs and offshoring to cheaper labor markets are standard operating procedure at CA, regardless of Broadcom's acquisition.

The question many people have is what will become of CA's severance package after the 1 year honor period where they will honor CA's plan of 2 weeks per year of service.

EVERY CA employee should be worried about this. Broadcom is doing $18B of debt financing to buy CA. So in addition to generating the expected amount of free cash flow it currently generates, it needs to make more to pay for the interest on the debt. The only way to do that is further cuts.

The Islandia lease goes to 2021, so a little more than 2 years away. I predict the 1000 people there will be cut in half by end of next year, and down to zero or close to zero in 2020.

Several sales rockstars I knew there have already left, so the hunting ground is probably crappy. No customer is going to want to buy net new given the uncertainty. Broadcom will milk Mainframe and sell off the rest as its profit margin is weak.

Gregoire is doing exactly what he was paid to do. He will no doubt jump off in his golden parachute, head back to Silicon Valley and his house in Los Gatos and become a partner in a VC or other fund.

Should the people in Prague be worried about this?

This is the end of CA as we know it. Fascinating to see a serial acquirer like CA get bought by a ruthless acquirer that will cut CA to its core and turn a bigger profit. Islandia will be closed now for good and CA can say “It was them, not us”. Broadcom runs with little to no people and outsources most of their admin jobs. I predict Islandia and everyone there will be gone by the end of the year if not quicker. At least the CEO will get rich, on the backs of every person. He was brought in to sell the company from the beginning despite the lies that were told and taking away most benefits like leaving early before a holiday.

Anyone and everyone left in Islandia should brush up their resume and start their job search before it’s too late.

Done deal.

Which means...

More layoffs.