Feb 4, 2016 | By Benedict
Software firm and 3D design specialist Autodesk today announced a restructuring plan that will prompt 925 staff layoffs—approximately 10% of the company’s workforce. The restructuring is intended to help accelerate the company’s transition to the cloud and a subscription-based business model.
Autodesk CEO Carl Bass / Image from Bloomberg
Autodesk, whose products include the ever-popular AutoCAD 3D design suite, announced its move to lay off 10% of its workforce earlier today, February 4. The significant staff cutbacks are the result of the company’s ambition to “reduce expenses, streamline the organization, and reallocate resources”. Leases on certain facilities will also be terminated, leading to additional cost savings in fiscal year 2017 and beyond. However, the company anticipates charges of up to $95 million as a result of the restructuring. The company’s shares, which trade on the NASDAQ, have risen steadily over the past few years, seeing a small dip in recent months.
“As we progress through our business model transition, we continue to take a comprehensive look at our company to see where we can be more effective and efficient,” explained Carl Bass, Autodesk President and CEO. “To realize maximum value for both our customers and shareholders, and as a follow-on to previously discussed cost reduction actions, 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.”
The California-based software company, founded in 1982, provides a range of products and services beyond its staple AutoCAD package, such as 3D printing platform Spark and game engine Stingray. It recently released Version 3.0 of its widely-used Meshmixer 3D mesh software, a staple for many 3D printing enthusiasts. In recent years, the company has been seeking to phase out perpetual licenses and sell its software though subscriptions only. Its creative suites, the only remaining Autodesk packages available on perpetual licenses, will transition to subscription-only on 31 July, 2016.
Autodesk was quick to point out the discretionary nature of its staff cutbacks, falsifying potential rumors of financial pressure on the company: “To be clear, the restructuring announced today is not related to anything we are seeing in the macro-economic environment,” said Bass. “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 Autodesk’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.
Posted in 3D Printer Company
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Bob wrote at 2/5/2016 5:47:39 PM:
Simply put subscription SUCKS!
Will wrote at 2/5/2016 8:58:25 AM:
Unacceptable they force/ransom you on subscription and each year they deliver less and less and now they get rid of the workers. The bean counters and management MUST GO or more will lose their jobs Will,