Software maker Computer Associates is to cut 800 jobs, or 5 percent of its work force, to pare costs amid stiff competition in software and services.
The job cuts will cost $40 million, or 4 cents a share, with charges of $24 million to be recorded in its fiscal second quarter.
The company's former chief executive, Mr Sanjay Kumar, pleaded not guilty last week to charges of fraud and obstruction of justice stemming from an investigation of improper accounting at the company.
The market for business software has been hurt by customers delaying purchases and cutthroat negotiating for lower prices.
A number of business software makers cut their financial forecasts last quarter. The Computer Associates job cuts are expected yield $70 million in annual savings.
The company said the cuts would come in all departments, but the impact on its sales force would be minimal. It expects the cuts to be finished next month.