On Thursday, February 27, 2025, San Francisco-based design software giant Autodesk revealed plans to lay off 1,350 employees—approximately 9% of its global workforce. This marks yet another significant headcount reduction in the tech sector, which has seen a wave of downsizing in recent months. The move comes as Autodesk aims to streamline its operations, stay competitive in cloud computing and artificial intelligence (AI), and adapt to a growing go-to-market (GTM) strategy.
Why the Layoffs? A Changing Tech Landscape
Autodesk’s CEO Andrew Anagnost outlined the reasoning in a memo to employees, pointing to shifts in the company’s business model. “Our GTM model has evolved significantly from the transition to subscription and multi-year contracts billed annually to self-service enablement, the adoption of direct billing, and more,” he wrote. These changes are designed to better serve customers and partners while boosting productivity. However, to fully capitalize on this transformation, Autodesk is restructuring its GTM organization—a process that includes workforce cuts.
Anagnost also emphasized the need to maintain leadership in cloud computing and AI amid a challenging economic climate. The layoffs are part of a broader trend across tech, with Meta slashing 5% of its staff in January, Workday cutting 8.5% earlier this month, and Google trimming its HR and cloud divisions this week, according to CNBC. HP also announced plans to reduce 1,000 to 2,000 jobs—under 4% of its workforce—in a Thursday regulatory filing.
Beyond Jobs: Facility Reductions and Costs
Autodesk isn’t just shedding staff. The company will also scale back its facilities, though a spokesperson confirmed to CNBC that no offices will close entirely. The restructuring will cost between $135 million and $150 million before taxes, reflecting the scale of this strategic pivot.
Strong Q4 Results Amid the Cuts
Despite the layoffs, Autodesk delivered a robust fiscal fourth-quarter performance, announced alongside the workforce news. The company reported adjusted earnings of $2.29 per share on $1.64 billion in revenue—a 12% year-over-year increase—beating analyst expectations of $2.14 per share and $1.63 billion per LSEG polls. The results highlight Autodesk’s resilience, even as it navigates internal changes.
Looking ahead, Autodesk’s fiscal Q1 guidance calls for $2.14 to $2.17 in adjusted earnings per share on $1.600 billion to $1.610 billion in revenue, topping LSEG’s consensus of $2.08 per share and $1.598 billion. For the full 2026 fiscal year, management projects $9.34 to $9.67 per share and $6.895 billion to $6.965 billion in revenue—again outpacing analyst forecasts of $9.24 per share and $6.902 billion.
What’s Next for Autodesk and the Tech Sector?
Autodesk’s layoffs signal a broader reckoning in tech as companies balance innovation with efficiency. The focus on cloud and AI leadership reflects industry-wide priorities, but it also underscores the pressure to adapt in a volatile economy. While the job cuts may sting, Autodesk’s strong financials suggest it’s positioning itself for long-term growth.
Will this restructuring pay off, or is it a sign of deeper challenges ahead? As tech giants from Meta to Google tighten their belts, 2025 is shaping up as a pivotal year. Keep an eye on Autodesk—and the industry—as these changes unfold.
