Design software giant Autodesk announced today it will cut approximately 1,350 employees, representing roughly 9% of its global workforce. The move comes despite a profitable quarter, as the company pivots resources toward artificial intelligence and cloud capabilities. CNBC reported the layoffs are part of a broader plan to maintain competitiveness in a changing tech landscape.
Key Facts
- The Cut: 1,350 employees (9% of staff).
- The Cost: Restructuring charges are estimated between $135 million and $150 million.
- The Context: Revenue actually grew 12% to $1.64 billion in the same quarter.
- Source: CNBC, Channel Futures
Targeting ‘Go-to-Market’ Roles
While many tech layoffs this year have focused on engineering, Autodesk’s cuts appear heavily weighted toward the business side. According to reports from Channel Futures, the company is reshaping its "go-to-market" organization—corporate speak for sales and marketing departments. CEO Andrew Anagnost stated the company is moving away from complex, multi-year contracts handled by sales reps toward "self-service" digital billing models. This transition reduces the need for a large manual sales force.
Profits Over People
This layoff fits a growing pattern of "profitable cuts" in the software sector. Autodesk is not in financial distress; in fact, the company reported a 12% revenue increase year-over-year. Instead of cutting to survive, the company is cutting to fund new bets. The savings from these salaries are being redirected specifically into AI development and "industry cloud" platforms, signaling that the company views automation not just as a product feature, but as an internal replacement for human labor.
No Office Closures Planned
Despite the significant reduction in headcount, the company does not plan to close any physical offices at this time. However, the restructuring will still incur substantial costs. Filings indicate the company expects to take a pre-tax charge of up to $150 million to cover severance packages and other termination costs. The cuts are effective immediately, with notifications beginning today.
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Bill covers the latest developments in Ai-driven workforce changes and corporate restructuring for Ai-Layoffs.com.
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