Thread regarding CA Technologies (CA Inc.) layoffs

Gregoire and his handful of ELT cronies circled the wagon and now have earned a huge payday. Note who gets the golden parachute and who does not. Only the people brought on since he joined cash out. The rest just get better severance.

Anyone who thought he was going to be CA’s savior was deluding themselves. In my interactions with him he was clearly all talk.

Yes, buying a product for $700 million then turning around and selling it for $400 million two years later would have earned old Mikie a one way ticket to the unemployment line. One thing I never heard Mike say in his entire tenure was "I was wrong". He blamed plenty of other people, but the buck always stopped with someone else. Now that is classy leadership.

CA didn’t want to divest what Gregoire called “core” products. They ACQUIRED these products and paid a premium for them.

There are ALWAYS buyers, it’s just about the price. They sold off Arcserve and Erwin and there were many bidders interested. The M&A team at CA is very busy. And unlike many on this board I know this first hand.

"Look at the org chart, 14k+" You obviously don't work there, or you would know this is flat out false. Gregoire even mentioned the 11k+ employees in his recent internal emails. Also, if you worked there you would know what has happened to renewals when teams were slashed drastically. Some products lost 85% of renewals in one year after customers abandoned the products. That is the nasty flip side of Agile and Devops. When the dev teams work directly with the customers they tend to know when the dev team is cut and development outsourced to HCL. I have no idea how Broadcom will play it, but I have a feeling they want to keep the cash rolling in. The whole "they will divest all non-mainframe software." is based on an amazingly naive assumption that they'll find buyers. CA had been trying to dump products for years with limited success.

"CA hasn't had 15k employees in years. Try closer to 11k...... If Broadcom thinks they can cut 80% of the work force they'll be in for a rude awakening. "

Look at the org chart, 14k+. I think its you that will be in for a rude awakening. You are living in the land of the make believe. Look at Broadcom's history, cut-cut-cut and the stock prices goes up. What rude awakening?? To Broadcom it has been very lucrative.

Broadcom will divest all non-mainframe software. Period.

Mainframe generates 65% margins which they can tweak higher.

Distributed generates 15% margins.

Services generates 0% margins.

They are financing this with debt, so you need to add the appropriate “tax” onto those margins to pay for servicing the debt. This isn’t hard to follow.

Services = gone.

Distributed = divested.

Europe has needed massive cuts for years, they never pulled their weight within CA. No continent leader there ever made their quota. Ever.

Broadcom’s model works and they will do what should have been done a long time ago. Cut the place in half. Europe has a lot of expenses and doesn’t bring in the appropriate amount of revenue. CA overall spends money on things that aren’t revenue generating and wasteful. Hock will cut all that out. Private planes, bike sponsorships, fancy expensive offices down the road from the house of an outgoing executive that barely showed up to any office yet forced everyone to be an office. For the few people that remain in the new CA, they will see true leadership finally.

"CA generates $4b with 15k employees." Hahaha!!! CA hasn't had 15k employees in years. Try closer to 11k. Yes, still a higher cost per employee, but they're totally different industries. If Broadcom thinks they can cut 80% of the work force they'll be in for a rude awakening. They can probably wack a good chunk of back office jobs, but sales and support are already stretched thin and will likely implode if cut much more.

"so I don't think they can lay everybody off so easily."

Not true. Broadcom's ax is big and sharp. Cuts quick and deep. Broadcom generates $20b with 15k employees while CA generates $4b with 15k employees.

We have not seen anything yet. Fasten your seat belts everyone, its going to get bumpy.

Goodluck all !