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.