Courtesy of Benzinga.
Shares of Autodesk, Inc. (NASDAQ: ADSK) were halted prior to Wednesday's market open. Once trading resumed, shares spiked as high as $50.90 and were trading at $49.24, up 7.3 with less than two hours of trading remaining in the day.
Autodesk announced a restructuring plan that will accelerate its move towards the cloud and its transition towards a subscription-based business model. The company noted that the objectives from its plan include reducing expenses, streamlining the organization and reallocate resources to align more closely with its future needs.
Autodesk added that it plans on reducing its staff level by approximately 10 percent and to consolidate certain leased facilities.
"As we progress through our business model transition, we continue to take a comprehensive look at our company to see where we can be more 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 will accelerate the move to the cloud and transition to a subscription-based business," said Carl Bass, Autodesk President and CEO.
Bass continued, "To be clear, the restructuring announced today is not related to anything we are seeing in the macro-economic environment. We ended fiscal 2016 on a high note with very strong fourth-quarter billings growth and continued demand for our subscription offerings. Solid revenues, coupled with continued cost-controls, led to better than expected non-GAAP EPS during the quarter. I'm pleased we were able to deliver these results at such a critical moment in Autodesk's transition."
Additional details of the company's restructuring plan will be provided during its fourth quarter results which is scheduled for February 25.
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