San Francisco, Jan 22, 2026, 13:57 PST
Autodesk announced Thursday it plans to slash roughly 7% of its global workforce—around 1,000 positions—as the San Francisco-based design software company shifts investment toward artificial intelligence (AI) and its cloud platform. The bulk of the job cuts will hit customer-facing sales teams, marking the end of a multi-year sales and marketing revamp.
Autodesk disclosed pre-tax restructuring charges ranging from $135 million to $160 million in a recent regulatory filing, with $90 million to $110 million hitting the current quarter ending Jan. 31. The company also raised its guidance, forecasting billings—the total value of invoices and contracts—revenue, non-GAAP profits, and free cash flow to exceed the upper limits of its previous estimates. Some of the savings are set to be reinvested through the fiscal year ending Jan. 31, 2027. Autodesk aims to wrap up the plan by the end of its fiscal 2027 fourth quarter but cautioned that results might fall short of expectations.
Chief executive Andrew Anagnost informed staff the layoffs are part of the “final phase” of the company’s go-to-market, or GTM, overhaul—a rethink of how Autodesk sells and supports clients. “This will not become an annual process at Autodesk,” he emphasized, adding the cuts aren’t meant to “replace people with AI.” Autodesk plans to provide severance packages, ongoing benefits, and career-transition assistance, with timing differing across countries. Autodesk News
A company spokesperson told SFGATE that roughly 10% of the layoffs will affect San Francisco staff, where Autodesk’s headquarters are located. Employees received an early-morning email about the cuts, but as of mid-morning, Autodesk had not filed a WARN notice — which is mandatory for many large-scale layoffs — with California’s labor department, the report said.
After the U.S. markets shut, Autodesk shares climbed roughly 5% in after-hours trading, hovering near $269.77.
The layoffs come after Autodesk announced in February 2025 that it would slash its workforce by roughly 9%, or about 1,350 jobs, amid a revamp of its sales structure. “Our GTM model has evolved significantly,” Anagnost said then, noting a move toward self-service and direct billing as the company aimed to boost online sales. Autodesk News
Autodesk offers design and engineering software for architects, builders, and manufacturers, plus tools for animation and visual effects. Its sales reach is broad, spanning individual users snapping up single subscriptions to companies locking in large, multi-year deals.
Software companies have long pointed to a shift in spending toward AI and cloud. The challenge lies in pulling it off without hitting renewals, customer service, or pricing—especially when the budget cuts target front-line teams that engage directly with customers.
Cutting back on sales coverage isn’t without risk. If customers start postponing renewals or begin shopping competitors, Autodesk might save some cash but lose valuable momentum.
For the moment, the company is urging investors to zero in on a clearer goal: streamlining its sales operations and boosting production capacity for products it believes will attract future buyers.
