Design software company Autodesk said it will reduce its global workforce by about 7 percent, impacting roughly 1,000 jobs, as part of a strategic push to redirect investments toward its cloud platform and artificial intelligence initiatives.
The layoffs will largely affect customer-facing sales teams and mark the final phase of Autodesk’s multi-year sales and marketing optimization program. The company had around 15,300 employees as of January 31, 2025.
Autodesk, known for software such as AutoCAD and tools widely used in movies, games, and industrial design, said the restructuring is aimed at streamlining customer engagement, strengthening sales channels, and driving sustainable revenue growth along with operating margin expansion.
Shift to subscriptions, cloud, and AI
The company has been transitioning from a traditional channel-centric sales approach to a subscription and usage-based transaction model. This shift is designed to deepen customer relationships, improve pricing control, and increase sales efficiency.
In a letter to employees, Autodesk CEO Andrew Anagnost said the workforce reduction is primarily driven by the completion of the company’s go-to-market transformation, along with targeted adjustments to support future growth priorities.
According to Anagnost, Autodesk is also expanding investments in AI, its industry cloud offerings, and core platform capabilities to deliver more connected and intelligent solutions. At the same time, the company is realigning corporate functions to ensure they remain scalable and resilient as the business evolves.
He emphasized that the layoffs are not driven by external market conditions or an effort to replace employees with AI, and that the move is a deliberate step to align the organization with its long-term strategy.
Financial outlook improves
Autodesk now expects billings, revenue, adjusted operating margin, adjusted earnings per share, and free cash flow for the fourth quarter of fiscal 2026 and for the full year to exceed the top end of its previous forecasts.
The company estimates total pre-tax restructuring charges in the range of $135 million to $160 million, primarily related to employee termination benefits, according to a regulatory filing. Autodesk expects to complete the restructuring plan by the end of the fourth quarter of fiscal 2027.
Autodesk competes with companies such as Adobe and PTC in design, engineering, and creative software markets, Reuters news report said. The announcement comes amid continued job cuts across the technology sector, with industry trackers estimating that more than 123,000 employees were laid off by 269 tech companies in 2025.
Autodesk will begin informing affected employees and will provide severance, benefits continuation, and career transition assistance where applicable, in line with local laws and regulations.
BABURAJAN KIZHAKEDATH
