Restructuring Plan Will Reallocate Resources to Transition to Cloud and Subscription Based Business Model
Autodesk will lay off about 925 staffers — about 10 percent of its total workforce — to reduce expenses as part of a restructuring announced today. The company said it is "reallocating resources," including consolidating certain leased facilities, to speed its transition to a cloud- and subscription-based business model.
"We are restructuring so we can focus resources on areas that will accelerate the move to the cloud and transition to a subscription-based business," said Autodesk President and CEO Carl Bass in a prepared statement. There was no word on which business segments or job roles might bear the brunt of the cuts.
More details on the restructuring will be released when the company announces fourth-quarter results on February 25, Autodesk said. In a press release, the company reiterated that it expects to meet or exceed its previously disclosed guidance for revenue, subscription growth, and earnings per share for the fourth quarter.
"We ended fiscal 2016 on a high note with very strong fourth-quarter billings growth and continued demand for our subscription offerings," Bass said, positioning the plan as a strategic move rather than a reaction to economic conditions.
The company said it expects to charge off up to $95 million in the restructuring and said "a portion of the savings" will be reinvested in its business-model transition.
Autodesk had previously announced that perpetual licensing of individual software products would end on January 31 of this year, with suites going subscription-only beginning August 1. It wasn't clear from this morning's announcement whether Autodesk plans on moving that August date forward.
