Autodesk cuts 7% of workforce to redirect investments to AI, cloud (www.reuters.com)

Autodesk has announced a significant restructuring plan, cutting approximately 7% of its global workforce, equating to around 1,000 jobs. This strategic move aims to redirect resources toward enhancing its cloud platform and artificial intelligence initiatives. The layoffs will primarily affect customer-facing sales teams, as Autodesk seeks to optimize its sales and marketing processes and transition from a traditional sales model to a subscription-based one. Following this announcement, Autodesk’s stock saw a notable increase of more than 3%, reflecting investor confidence in the company's future growth strategy. This shift holds considerable significance for the AI/ML community, as Autodesk’s focus on AI and cloud advancements mirrors the broader industry trend of integrating artificial intelligence into design tools and workflows. By reallocating funds and streamlining operations, Autodesk aims to improve customer engagement and bolster its competitive edge against rivals like Adobe and PTC. The company anticipates exceeding previous revenue forecasts, although it will incur restructuring costs of around $135 million to $160 million. The restructuring process is expected to conclude by the end of fiscal 2027, positioning Autodesk to leverage AI technologies more profoundly in its software offerings.