Autodesk, the renowned design software company based in San Francisco, has announced a 9% reduction in its global workforce, affecting approximately 1,350 employees.
The decision is part of a broader restructuring plan aimed at enhancing the company’s efficiency and focusing on key growth areas such as artificial intelligence and platform development, reports the San Francisco Chronicle.
In a message to employees, Autodesk President and CEO Andrew Anagnost expressed regret over the layoffs but emphasized that the move is necessary for the company’s future success.
He assured that Autodesk will provide comprehensive support to the affected employees throughout this transition.
The layoffs are part of Autodesk’s effort to reorganize its marketing strategy. With the transition to a subscription-based model and the adoption of self-service options, the restructuring aims to enhance customer satisfaction and improve productivity.
Additionally, the company plans to invest more in artificial intelligence, cloud technology, and industry-specific solutions to remain competitive in the market.
Autodesk has committed to supporting affected employees through severance packages, career assistance, and job relocation services.
This decision aligns with a broader trend in the tech industry, where companies like Salesforce and Workday have also made cuts to reallocate resources toward high-growth areas such as artificial intelligence.
Despite the layoffs, Autodesk reported double-digit revenue growth in the last quarter, with adjusted earnings exceeding analysts’ expectations.
The company recorded revenues of $1.64 billion, a 12% increase from the previous year, and adjusted earnings of $2.29 per share.
For the upcoming quarter, Autodesk anticipates adjusted earnings between $2.14 and $2.17 per share, with projected revenues ranging from $1.6 billion to $1.61 billion.
Following the announcement, Autodesk’s shares rose by 5.6% in after-hours trading, reflecting investor confidence in the company’s strategic direction.
This restructuring underscores Autodesk’s commitment to adapting to the evolving market demands and focusing on emerging technological areas to secure its position as a leader in the design software industry.
