Autodesk, a San Francisco-based software company, has announced plans to reduce its workforce by approximately 9 percent, marking the latest development in a wave of layoffs sweeping through the tech sector. The decision will impact around 1,350 employees globally as part of the company’s "worldwide restructuring plan."
The announcement, made on Thursday, also revealed that Autodesk plans to close certain facilities as part of its restructuring efforts. Autodesk is best known for its flagship product, AutoCAD, a software platform widely used by architects, engineers, and designers in construction and manufacturing industries.
Despite reporting double-digit growth in the fourth quarter, the company stated that the layoffs were necessary as it reallocates resources to focus on emerging opportunities in artificial intelligence (AI) and cloud-based solutions.
"Autodesk is focused on the convergence of design and make in the cloud, enable[d] by platform, industry clouds, and AI", said Autodesk President and CEO Andrew Anagnost. "We are reallocating internal resources toward these critical areas and beginning the optimization of our go-to-market functions to better meet the evolving needs of our customers and channel partners."
The restructuring is expected to result in pre-tax charges ranging from $135 million to $150 million. Autodesk’s decision aligns with similar cost-cutting measures recently announced by other tech giants, such as Salesforce and Workday, as companies across the sector grapple with changing market conditions and prioritize investment in AI technologies.
As Autodesk undertakes these changes, the company’s leadership has expressed a commitment to aligning its strategy with shifts in customer needs and technological advancements. The impact of these layoffs, alongside the broader trend in the tech industry, continues to shape the employment landscape in the Bay Area and beyond.
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