What can you do when you record a +10% annual revenue growth and $315 million in income? Autodesk decided to lay off 9% of its workforce...
The Atomic Layers: S8E4 (00210)
Atomic Layer of the Day:
Over the past few weeks, I have repeatedly praised Autodesk and the range of great features they have implemented in the AM space. Specifically, their nesting tool for powder-based 3D technologies, as well as the integration of a slicer function for Bambu Lab FFF 3D printers.
But while these tools are truly excellent, we must remember that Autodesk is a large global corporation, and from time to time, it does typical corporate things.
Like now—announcing layoffs affecting 9% of its workforce, despite a +10% revenue growth for 2024 and increases in nearly every individual business segment.
In Q4 2024, Autodesk reported revenues of $1.47 billion, an 11% increase compared to the same period last year. Adjusted for constant currency, the growth reached 14%. Revenue from the Design business grew by 10%, while the Make business saw a 16% increase. GAAP operating income amounted to $315 million, while non-GAAP operating income reached $522 million.
For the full fiscal year 2024, Autodesk recorded revenues of $5.50 billion, reflecting a 10% increase (13% at constant currency). GAAP operating income was $1.13 billion, while non-GAAP operating income reached $1.96 billion.
The company also reported an increase of 785,000 subscriptions, reaching a total of 7.53 million active subscriptions by year-end!
In summary, Autodesk posted solid revenue and profit growth in both Q4 and the full 2024 fiscal year, maintaining stable operating margins and expanding its subscriber base.
And yet, in contrast to this, the company has just announced a global restructuring that will eliminate 1,350 jobs—9% of its total workforce.
In a message to employees, Autodesk CEO Andrew Anagnost stated that the company would do "everything possible to support impacted employees and treat them with care throughout this process."
This is very noble and merciful. I like it.
But what is the reasons for the layoffs, anyway?
Anagnost mentioned that the company would be shifting resources and accelerating investments in AI, platform, and industry clouds. And, of course, the world isn't in great shape. You know, the usual suspects: "rapid changes to the global business environment due to macroeconomic and geopolitical factors, as well as evolving regulations."
Translated into plain language—Autodesk aims to maximize its subscription-based revenue model while cutting operational costs, striving to achieve one of the highest margins in the CAD industry.
In the long run, these changes could improve the company’s profitability but might also impact the pace of new feature and product development. I have no idea how high AM ranks on Autodesk’s priority list, but let’s appreciate what has already been achieved, ok?
And hey, do Mr. Anagnost a favor—buy a Fusion subscription. Let these thirteen hundred people not lose their work in vain.
Atomic Layer from the Past:
03-04-2016: Autodesk revealed Project Escher for super-fast, multi-head 3D printing of large-scale parts.
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