.

San Rafael-based Autodesk to Slash 500 Jobs

The design software company announced that it will be reducing its staff by 7 percent in its recent restructuring effort.

On a the heels of a disappointing earnings report, San Rafael-based design software company announced that it will reduce its staff by more than 500 positions, or 7 percent of its total workforce.

The restructuring is related to the company’s shift to cloud and mobile computing and would result in a pre-tax charge—a deduction against their profits—of $50 million to $60 million. Approximately $40 million to $45 million of that will be taken in the third quarter fiscal year of 2013.

"This action allows us to continue to invest in recruiting and hiring people who can bring Autodesk the skills and experience that are critical for achieving our mid and long-term goals,” Autodesk CEO Carl Bass said.

As Autodesk continues to invest in cloud and mobile computing, the company is already in the process of hiring new employees and expects to make up that 7 percent within the year, according to spokesman Greg Eden.

The multinational corporation focuses on 3D design software for use in the architecture, engineering, construction, manufacturing, media and entertainment industries. Its worldwide headquarters are located in San Rafael, and the company has offices in Australia, New Zealand, China, India, Japan, Korea, Europe, the Middle East and Africa.

Eden would not comment on which locations would be affected by the restructuring.

The announcement came with the news of a 9.3 percent profit fall for the second quarter, where shares fell 21 percent after hours to $28.25. As a result, Autodesk decreased its revenue outlook for growth to between 4 percent and 6 percent, instead of the originally estimated 10 percent, according to Eden.

“Organizational changes we made within the company earlier this year slowed us down during the quarter,” Bass said. “Despite our second quarter results, the changes better position Autodesk to meet the needs of our customers.”

The restructuring will provide the opportunity to reduce costs and streamline the organization, according to Bass.

Adjusted earnings of 40 cents to 45 cents per share on revenue of $550 million to $570 million are expected this quarter, which ends on October 31.

"Although the economic environment is challenging, our market opportunity and prospects remain strong and we remain committed to achieving our long-term growth targets by the end of fiscal 2015," Bass said.

"Like" us on Facebook | Follow us Twitter | Get "Patched" in with our newsletter | Start a blog

D. C. Beard August 24, 2012 at 06:01 PM
Alas, Marin loses more high-paying jobs ontop of the 700 high paying jobs lost when the supervisors let a small and highly influential minorty give George Lucas the boot.
Pherank September 07, 2012 at 10:59 PM
In other words, Autodesk is laying off 500 people rather than train them, and, they will hire 500 more at lower salaries. Autodesk is creating jobs(!), while impacting local real estate and businesses (since 500 people will not be able to pay their mortgages/rents, and definitely won't be able to afford Marin/San Francisco prices for much of anything on social security).

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something