Autodesk to cut 750 jobs, lowers earnings outlook
Software maker plans to erase about 10 percent of its workforce. The move comes as it lowers its earnings outlook and as its executive chairwoman leaves to become Yahoo's CEO.
Autodesk announced on Thursday plans to cut about 10 percent of its workforce--or about 750 employees--as it lowered its fourth-quarter earnings outlook.
The drafting and design software maker now expects to post between $475 million and $500 million in revenue when it reports results on February 26. In its previous forecast in November, the company said it expected to bring in $525 million to $550 million in the quarter.
Autodesk also lowered its non-GAAP earnings outlook to 18 cents to 24 cents, excluding special charges, down from its previous forecast of 28 cents to 34 cents.
The company's shares fell as much as 15.5 percent in intraday trading to $14.98.
Autodesk plans to take a pretax charge of $65 million to $75 million as a result of the restructuring and layoffs, and save roughly $130 million in annual pretax dollars beginning next year.
Autodesk noted that it also "may take an impairment charge of up to $125 million net of taxes" in the fourth quarter, adding that a final determination hasn't been made.
The layoff announcement and fourth-quarter warning come two days after Yahoo announced its hiring of Autodesk Executive Chairwoman Carol Bartz as its new CEO.