Autodesk, a developer of 3D modeling tools, will lay off 1,150 employees. The company explained this by switching services to a subscription.
Instead of one-time sales and technical support of software, Autodesk provides access to its products based on a paid subscription.
Planned layoffs account for about 13% of the size of Autodesk’s staff. Due to the cuts, the company will incur losses in the amount of $135 to $149 million.
After the news of the restructuring and layoffs, the company’s shares fell by 10%. At the same time, Autodesk reported a 5% rise in revenue to $515 million in the 3rd quarter of 2017 compared to the same period a year ago.
The company is confident that switching to a subscription removes the high price threshold for customers and provides Autodesk with more stable cash receipts.
The previous cuts at Autodesk took place in February of this year. Then 925 employees left the company.
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