Autodesk to Lay Off 1,350 Employees to Boost AI Investments

Autodesk Inc., a design software giant based in San Francisco, has announced it will lay off approximately 1,350 employees, representing about 9% of its global workforce. The company states this move is part of a broader restructuring effort to improve efficiency and reallocate resources towards artificial intelligence (AI) and cloud computing initiatives.

CEO Andrew Anagnost clarified in a memo to employees that the decision was made internally to drive efficiency following the implementation of the New Buying Experience, and not due to external pressures. The restructuring aligns with Autodesk's transition to a subscription-based model and aims to simplify customer interactions and improve billing processes.

The layoffs also involve facility reductions, though Autodesk has confirmed it will not close any offices. The company anticipates incurring restructuring expenses between $135 million and $150 million before taxes.

This announcement comes despite Autodesk reporting strong fiscal fourth-quarter results, surpassing analyst expectations. The company's adjusted earnings per share were $2.29, up from $2.09 in the same quarter of the previous fiscal year, with revenue reaching $1.64 billion, a 12% year-over-year increase.

Autodesk is part of a larger trend of tech companies implementing layoffs. Other firms, including Meta, Microsoft, Google, and HP, have also recently announced job cuts