Autodesk–the Bay Area-based maker of software for designers, engineers, architects, and artists–plans to eliminate 1,150 jobs, a spokesperson told Co.Design in an email. That’s equivalent to 13% of its workforce. The company is also restructuring to focus more on building its subscription-only services.
In a statement about its third-quarter FY18 performance, Autodesk said its restructuring will “focus on the company’s strategic priorities of completing the subscription transition; digitizing the company; and re-imagining manufacturing, construction, and production. Through the restructuring, Autodesk seeks to streamline the organization and re-balance resources to better align with the company’s priorities.”
In 2016, Autodesk announced a shift to subscription-based access to its software, a similar approach to the one Adobe took with Creative Cloud in 2013. So far, the results have been promising for Autodesk’s shift towards a subscription model. According to the company’s report, subscriptions increased 146,000 from the second quarter of FY18 to 3.6 million at the end of the third quarter.
“As we enter the growth phase of our model transition, we need to re-balance investments to focus on our strategic priorities,” Andrew Anagnost, Autodesk president and CEO, said in the statement. “This includes divesting from some areas and increasing our investment in others. We’re taking this restructuring action from a position of strength. ”
The news release did not mention specifics on which departments and which employees the layoffs would affect most. A spokesperson told the San Francisco Chronicle that the company is still working out the details and cannot disclose specifics at this time. Co.Design reached out to Autodesk for comment; we’ll update the story if we hear back.
Update: An Autodesk spokesperson has confirmed that the company will reduce staffing levels in the near term by 13%, equivalent to 1,150 people.