Shares of Autodesk (NASDAQ: ADSK) advanced by 3% on Thursday following the company’s announcement of a workforce reduction affecting roughly 1,000 employees, equating to 7% of its total global staff. This move is a key element of Autodesk’s final step in streamlining its sales and marketing operations.
The restructuring effort primarily targets the customer-facing sales segment, with a portion of savings redirected toward Autodesk’s strategic priorities throughout its fiscal year culminating on January 31, 2027. The company has forecasted pre-tax restructuring expenses ranging between $135 million and $160 million, with $90 million to $110 million to be recognized in the fourth quarter of fiscal 2026, ending January 31, 2026.
CEO Andrew Anagnost addressed the workforce changes in a letter to employees, emphasizing that the adjustments stem from three main strategic directions: completing the transformation of the company's go-to-market approach, enhancing artificial intelligence and platform capabilities, and bolstering corporate functions. Anagnost clarified that this workforce reduction would not become an annual event and is not motivated by external pressures or a substitution of personnel with AI technologies.
Alongside the restructuring, Autodesk disclosed robust performance in the fourth quarter of fiscal 2026. The company now projects billings, revenue, non-GAAP operating margin, non-GAAP earnings per share, and free cash flow to surpass the highest end of previously issued guidance.
Importantly, the anticipated restructuring costs will be excluded from the company’s non-GAAP financial metrics. Autodesk intends to complete its restructuring initiatives by the conclusion of fiscal 2027's fourth quarter.