MW Autodesk says it's cutting 9% of its workforce, and shares jump
By Bill Peters
Design-software firm says it's 'reallocating internal resources' toward cloud and AI
Design-software developer Autodesk Inc. on Thursday said it would cut around 9% of its workforce, or around 1,350 employees, amid a bigger effort to prioritize cloud services and artificial intelligence.
Executives made the announcement in the company's earnings release, which also offered up a full-year outlook for sales, billings and per-share profit that came in above Wall Street's expectations.
Shares of Autodesk $(ADSK)$ jumped 6.9% after hours on Thursday.
The company said that the job cuts followed a business review and were happening as part of a "worldwide restructuring plan."
"Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds and AI," Chief Executive Andrew Anagnost said in the release. "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 company - whose software helps architects, construction workers, equipment manufacturers and animators design concepts and manage projects - said it expects full-fiscal-year revenue of $6.895 billion to $6.965 billion. The midpoint of that forecast was a bit above FactSet forecasts for $6.902 billion.
Autodesk forecast adjusted earnings of $9.34 to $9.67 a share, above estimates for $9.24. It said it expects billings, or the sum of its sales and changes in deferred revenue, of $7.06 billion to $7.21 billion. FactSet forecast $6.983 billion. Autodesk's current fiscal year ends on Jan. 31, 2026.
The software developer reported fourth-quarter sales of $1.64 billion, up 12% year over year and above FactSet expectations for $1.63 billion. Adjusted earnings per share were $2.29, also above estimates for $2.14.
As of Thursday's close, Autodesk's stock was up 9.4% over the past 12 months.
-Bill Peters
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February 27, 2025 16:56 ET (21:56 GMT)
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