Design software company Autodesk has announced plans to cut approximately 750 jobs and consolidate certain facilities as part of a plan to reduce operating expenses.
The company said these initiatives are in addition to the ongoing actions previously announced that include a hiring freeze, business travel restrictions, and other reductions in its operating expenses.
The company expects the restructuring to generate annual pre-tax cost savings of approximately $130m from fiscal 2010. It also expects to incur pre-tax charge in the range of $65m to $75m, out of which approximately $45m to $50m in pre-tax charges will be taken in the fourth quarter 2009 with the remainder taken in the first quarter 2010.
The company has also agreed to sell its Location Services business to a private equity firm Hale Capital Partners for an undisclosed sum.
It lowered its business outlook for the fourth quarter 2009 and reduced its revenue outlook from between $525m and $550m to $475m and $500m. It also expects net loss per diluted share in the range of $0.12 and $0.05.
Carl Bass, president and chief executive at Autodesk, said: Global economic conditions continue to impact our end-user demand. Given the current uncertainty of the economic environment, the cost savings initiatives we are implementing are prudent. Autodesk has a strong cash position and leadership across multiple product sectors and geographies.
In November 2008, the company reported a 23% increase in net income to $104.5m for the third quarter, compared to $84.8m in the year-ago quarter, on revenue up 13% at $607.1m.
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