Autodesk (ADSK) Announces Restructuring; to Cut 10% of Workforce; Cuts Q4 Outlook

January 15, 2009 8:11 AM EST

Autodesk, Inc. (Nasdaq: ADSK) today announced a restructuring plan to reduce its annual operating expenses. The company anticipates the restructuring will result in annual pre-tax cost savings of approximately $130 million annually starting in fiscal 2010.

As part of its restructuring plan, Autodesk plans to reduce its workforce by approximately 750 employees, representing approximately 10% of the company's global workforce. The company also plans to consolidate certain facilities. The actions announced today are in addition to the ongoing cost reduction initiatives previously announced, which include a hiring freeze, business travel restrictions, and other reductions in its operating expenses.

As a result of this restructuring, the company anticipates taking a pre-tax charge in the range of $65-$75 million. Approximately $45-$50 million in pre-tax charges will be taken in Q409. Most of the remaining charge will be taken in Q110.

Lowers its Q4 sales guidance from $525-$550 million to $475-$500 million, versus the consensus of $536.05 million. Non-GAAP EPS for the quarter move from $0.28-$0.34 to $0.18-$0.24, versus the Street estimate of $0.31.

Autodesk, Inc. operates as a design software and service company.

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