Autodesk is cutting 13% of its workforce
On November 28, software maker Autodesk (ADSK) said that it plans to cut 13% of its workforce or 1,150 jobs. The company said the job cut will cost up to $149 million.
The move comes at a time when the company plans to sell its software on a subscription basis rather than selling it upfront. The company’s shares fell 0.5% in after-hours trading on Tuesday. The company’s shares have risen 75% in 2017 and 17% in the last three months.
Autodesk saw a 5% YoY increase in its revenue
Autodesk said it wants to divest from some areas of its business. The company has been seeing a negative bottom line since 2015, as the above graph shows.
Autodesk is renowned for its 3D imaging business AutoCAD. The product is used by construction and architecture firms. The company wants to shift to a subscription-based revenue model in order to boost its revenue.
Autodesk reported its first quarterly revenue growth in over two years in fiscal 3Q17. The company reported 5% YoY (year-over-year) revenue growth, which took its revenue to $515 million. Autodesk reported losses of $119.8 million in fiscal 3Q17—compared to losses of $142.8 million in the same quarter last year.