Autodesk to shutter specific projects, cut 1,150 jobs

autodesk
Tags: #<Tag:0x00007f5fdbaf8bf0>

#1

Not too surprising as their product lines are being restructured and products are getting chopped. 1,150 is a lot of heads though.

From the earnings call, Scott Herren says, “this wasn’t a – some kind of across the board peanut butter method type restructuring. It was a very targeted set of divestments that were focused on a few areas.”

To which CEO Andrew Anagnost followed saying that targeting the specific areas is “more motivating for the other people because they say, wow, okay, we’re getting investment over here and we’re not being asked to do two things with less money again…”

Here’s the article from Fortune:
“Software maker Autodesk plans to cut 1,150 jobs, or 13% of its workforce, as it shifts focus to selling its products on a subscription basis instead of mostly charging for them upfront.”


#2

Wow. 13% is a pretty brutal cut. Will they maintain that level and keep the employee leve static to maintain cost?


#3

So the CAD market has topped out? Everyone has a peanut butter and jelly sandwich?


#4

I don’t think this means the market has topped out. I take it as a way to reign in the bottom line and eliminate the duplication across product lines that are being restructured. They still have a lot of products, but they’ve been shuttering some and I expect more will be consolidated.


#5

Subscription based model a Total success … :confused:


#6

www.Alibre.com is a great alternative to owning CAD software and not subscribing to it. I heard they have a 50% off sale for Cyber Monday/BLack Friday and payment plans to help everyone.


#7

You think this is is part of the reason Carl Bass stepped aside? I can see how their overhead was massive though, with all those acquisitions they’ve done.


#8

Nope. They had another round of cuts a year before that cut about 1,000 people as well. Carl had been planning to leave for a while.


#9

So the adopted subscription based model was about ‘consolidation’ as they call it in the corporate jargon ? They bought other companies to kill them ?

So 1000+1300 is 20% workforce chopped… sounds like the destruction of HP by Carly Fiorina.

I remember well… step by step destroyed the best Company (one of the best) for doing Engineering ever.

Soon they will claim that “now they are reaaaally efficient” and Wall Street will award them a stock hike… Meanwhile product quality gets lower and lower until they collapse under the competition that continues to produce good engineering tools.

I already saw that movie…


#10

I wouldn’t believe that was the original intent (for most acquisitions anyway), but ultimately when a company buys another one, they want their IP and Market share.