13% of workforce shown the door as company moves to sub-based model
3D tools and software outfit Autodesk has
announced plans to restructure will will see it cut 1,150 employees and
refocus on a subscription based model.
Autodesk, who are headquartered outside of San
Francisco, has said that the cuts could cost them between $135m to
$149m. 1,150 employees is around 13% of the firm’s workforce.
Autodesk are popular in the game’s industry, with
their 3D modelling tools used by several AAA studios. Their move to a
subscription based service will get rid of any upfront fees for the
service, eliminating the initial high costs in favour of a more steady
frame of revenue for the company.
The company’s shares dropped 10% in the aftermath of
the announcement, even though the compny also reported a 5% jump in
revenue to $515m, while losses dropped to $119.8m from $142.8m.
"As we enter the growth phase of our model
transition, we need to re-balance investments to focus on our strategic
priorities," said CEO Andrew Anagnost in the announcement.
"This includes divesting from some areas and
increasing our investment in others. We're taking this restructuring
action from a position of strength. This is not a cost reduction
activity as we maintain our commitment to keep total non-GAAP spend flat
this year and next."
These cuts follow a previous layoff, announced in February 2016, which saw cuts hit 925 workers.