Saturday, June 16, 2007

Compuware expects $21M in layoff costs


NEW YORK (AP) - Mainframe computer software maker Compuware Corp. expects to log $21 million in costs from the elimination of 245 jobs, according to a filing with the Securities and Exchange Commission.

In an 8-K filed with the SEC Friday, Compuware said the sum includes $16 million in severance-related costs and about $5 million in other costs. About $17 million of the total will lead to future cash expenditures, Compuware said.

The job eliminations, which were announced Monday, affect more than 3 percent of the company's work force and are meant to cut overall costs and make the company's operations more efficient, Compuware said.

Detroit-based Compuware said Monday it anticipates saving about $25 million each year as a result of the job eliminations.

Compuware shares added 2 cents to $11.87 in morning trading.

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