Given the dimensions and software-focus of Autodesk, it may be complex to pin the tech company’s newly revealed plan to lay off 10% of its workforce, 925 employees, to the deflation of the 3D printing hype bubble. Instead, Autodesk, describes the layoffs as part of a “restructuring plan” to move of physical software to a cloud-based, subscription version.
Whilst Autodesk began as the inventor of AutoCAD in 1982, the company has since created a wide range of software for 3D create across multiple platforms. With the commence of the Ember 3D printing device, the company created its initially moves into complexware as a means of supporting their sizeabler Spark 3D printing platform. And, with Stingray, Autodesk expanded of additional traditionally engineering create to game create, as well.
Increasingly, powerful and expensive software platforms have been forced to move to cloud-based, subscription versions after the explosion of software piracy and affordable-bodied apps, manufacturing previous versions with such high price tags seem ludicrous by comparison. Adobe has shifted of high-priced software licenses to a subscription version and Autodesk has slowly been shifting to the cloud, as well. So, the same money is not being earned through software as once was.
CEO Carl bass said of the layoffs, “As we progress through our business version transition, we go on to take a comprehensive appear at our company to see where we can be additional effective and efficient. To realize maximum value for both our customers and shareholders, and as a follow-on to previously discussed cost reduction actions, we are restructuring so we can focus resources on areas that can accelerate the move to the cloud and transition to a subscription-based business.”
He go ond, “To be clear, the restructuring revealed already is not related to anything we are seeing in the macro-economic environment. We ended fiscal 2016 on a high note with really sturdy fourth-quarter billings growth and go ond demand for our subscription contributeings. Solid ractuallyues, coupled with go ond cost-controls, led to advantageous than expected non-GAAP EPS during the quarter. I’m joyous we were able-bodied to donate these results at such a significant moment in Autodesk’s transition.”
In other words, despite the decision to lay off a chunk of its workforce, the company is yet achieving sturdy earnings. The number of employees being let go are not really so sizeable as those displaced by HP, that numbers in the tens of thousands. But, whenever lay offs with sizeable corporations occur, its complex for me not to ponder of other ways that those employees’ jobs may have been spared if executive pay were cut by a few amount.
For instance, in 2015, Bass earned a total of $11,040,453 in compensation, which include stocks and salary. Based on Glassdoor information, Autodesk employees are paid rather well overall, with summer interns actually earning above a living wage and many other employees bringing in $70k and above. So, to spare, say, 925 employees earning $100k every, Autodesk may have to find $92.5 million or so. In this case, it may be complex to save all of those jobs of executive pay cuts alone, actually if Bass and his man executives (all earning of $2 million every) were reduced by half, yet it’s possible that 100 jobs may have been saved. For ereallyone else, they may have to cut the salary of all other employees, too. Not unponderable-bodied, but, in the case of Autodesk, the decision to lay folks off appears less callous than as has occurred with other sizeable corporations. And, given the decent pay they contribute their employees, it’s possible that the severance packages weren’t too bad, yet I can’t seem to find out how much they may be anywhere online.