Autodesk Purging More Than 1,000 Jobs

(RTTNews) - Autodesk (ADSK) plans to cut 1,150 jobs, or 13% of its global workforce, as the software maker plans to shift its focus to selling its products on a subscription basis. Autodesk's shares is currently down 14%.

"Through the restructuring, Autodesk seeks to streamline the organization and re-balance resources to better align with the company's priorities," Autodesk said in a statement.

Autodesk is undergoing a business model transition in which it has discontinued most new perpetual license sales in favor of subscriptions and flexible license arrangements. Autodesk's software like its 3-D imaging AutoCAD is widely used by architecture, construction, and manufacturing firms.

Autodesk expects the job cuts to cost it between $135 million and $149 million in pre-tax restructuring charges. About $91 million to $100 million in charges will be taken in the fourth quarter, while remaining charge will be taken in fiscal 2019.

In February 2016, Autodesk had announced job cuts of 925 employees, or 10% of the overall workforce.

For the fourth quarter, Autodesk expects adjusted loss between $0.14 and $0.10 a share on revenues between $537 million and $547 million.

ADSK is currently trading at $111.75, down $18.20 or 14.01%, on the Nasdaq.