Autodesk announces restructuring plan
CAD giant will layoff 10 percent of workforce as it accelerates toward the cloud and subscription-based model.
On Wednesday, Autodesk announced a restructuring plan that it says will seek to reduce expenses, streamline the organization, and speed up its transition toward the cloud and a subscription-based business model. As part of that plan, the company says it will layoff approximately 10% of its workforce (~925 positions) in the near future and consolidate certain leased facilities.
Autodesk expects these actions will result in additional cost savings in fiscal 2017 and beyond, but stresses that the move isn’t a reaction to reduced revenue. The company says it expects to be at the high end or exceed its guidance ranges for billings, revenue, non-GAAP EPS, and net subscription additions for the fourth quarter of fiscal 2016.
“To be clear, the restructuring announced today is not related to anything we are seeing in the macro-economic environment,” Autodesk president and CEO, Carl Bass, said on Wednesday. “We ended fiscal 2016 on a high note with very strong fourth-quarter billings growth and continued demand for our subscription offerings. Solid revenues, coupled with continued cost-controls, led to better than expected non-GAAP EPS during the quarter. I’m pleased we were able to deliver these results at such a critical moment in Autodesk’s transition.”
Additional details regarding the company’s fourth quarter financial results and restructuring plan will be provided on the company’s regularly scheduled earnings conference call to be held on February 25, 2016 at 5:00PM ET.