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Software Giant Autodesk to Axe 13% of Global Workforce

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Re: Software Giant Autodesk to Axe 13% of Global Workforce

#31
post #14

Earlier quoted context omitted.

I don't think they monopolize this market. All the big industrial groups I've worked with were using CATIA

CATIA is Mechanical CAD right? AutoCAD is for architecture.

CATIA is the defacto industry leader in 3D CAD.

AutoCAD is the defacto industry leader in 2D CAD (given got some 3D support too). Though as more and more companies are moving to 3D CAD, they are looking for 3D CAD software built from the ground up for 3D CAD.

3D CAD is not just 3D, it's about parametric geometric kernel, CAM, CAE.

AutoDesk's "real 3D CAD" is called Autodesk Inventor. Competitors are SolidWorks, Solid Edge, Siemens NX, PTC Creo Direct/Pro, CATIA, FreeCAD.

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#33

Earlier quoted context omitted.

It's much worse than that unfortunately. Pre-tax income 2013: $310m on $2.3b in sales Pre-tax income 2014: $279m on $2.26b in sales Pre-tax income 2015: $83m on $2.5b in sales Pre-tax income 2016: -$20m on $2.46b in sales Pre-tax income last four quarters: -$544m on $1.95b in sales Net income for 2013 was $247m, for 2014 it was $228m, for 2015 it was $81m. For the last eight quarters, it's nearly a negative billion d…

Autodesk continuously touts that they are in a big transition from product sales to subscription and that huge growth is just around the corner. Do you discount those claims?

I don't see why it would be necessary to discount such claims. The claims are worthless. They're not worth considering at all, until they prove something (and right now they're running a substantial credibility deficit).

Ten years of zero net growth, and four years of declining profitability, should tell you everything you need to know about what's actually happening. They've spent most of their profits from the last decade on faking EPS growth with buybacks while their business was languishing. Now things are so bad, they're hatcheting their most valuable resource: their people.

I think they spent ~$188 million buying back their stock in the first quarter, while losing over $100m in operating income. They paid $85 per share for those shares. Around 80 times earnings, if earnings were still at the old 2013 levels.

It's financial suicide. They're driving Autodesk into a wall at high speeds, while destroying their balance sheet trying to keep the stock propped up with buybacks far beyond what they can actually afford based on present profitability and a reasonable outlook the next few years (which is why they're firing 13% of their staff).

Or put it another way. The cost of the share buyback announced last year could cover the cost of the 13% of workers that are getting fired, for at least two decades.

Autodesk long ago got into the IBM financial engineering business. The consequences of that are getting more unavoidable by the year.

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#34
post #2

The 2016 layoffs of similar magnitude didn't seem to make a noticeable impact in their software's update cadence. They are a company formed though an old sediment of mergers and acquisitions and I'm not surprised they've built up inefficiencies.

Do you realize that calling people inefficiencies sounds rather cold?

That’s not how I read the comment. I took it as “inefficiencies in procedures or how departments communicate.”

But it’s true that making the place more efficient will lead to layoffs. It doesn’t have to; they could just as easily use the same people to do more, but apparently the managers don’t have any ideas for what else to do.

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#35

Earlier quoted context omitted.

Autodesk continuously touts that they are in a big transition from product sales to subscription and that huge growth is just around the corner. Do you discount those claims?

I don't see why it would be necessary to discount such claims. The claims are worthless. They're not worth considering at all, until they prove something (and right now they're running a substantial credibility deficit). Ten years of zero net growth, and four years of declining profitability, should tell you everything you need to know about what's actually happening. They've spent most of their profits from the last…

[deleted]

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#36

Much of the layoffs tend to happen in North America and Europe and the hiring is in China I understand at Autodesk. I do not have numbers to back that up though, but it is my understanding.

As part of this restructuring they are closing the European HQ in Neuchâtel, Switzerland, that's ~230 jobs. [1]

We have our offices next door and I feel sorry for them.

[1] https://www.swissinfo.ch/eng/business/software-shock_autodes...

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#37

Lol, I just got an interview offer from Autodesk on Monday via LinkedIn.. Uhh, no thanks.

I've seen that plenty of big companies lay off people with the left hand and continue hiring with the right - usually for different teams on different locations.

I'm not as enthusiastic to work in one of those megacorps as I once was, and yes, if they decide to do a layoff round next year you could be affected, but I guess that at the very least you'd have one year of employment there.

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#39
post #8

Earlier quoted context omitted.

How do they manage such abysmal numbers after essentially monopolizing the CAD software market?

Architectural offices that still use cad, prefer ZWCAD, that is literally a Chinese copy of Autocad (with the same UI and even Lisp scripting) that you can buy for 10% of price. AutoCAD as a software is nearly done: Autocad 2017 is just a chromy version of Autocad 2007 despite their R&D efforts. IMHO their product is nowadays REVIT (3DMax has fierce competition and is a lost battle). REVIT is a product that is still…

>Architectural offices that still use cad

Out of curiosity, what is the modern alternative to CAD used by architectural offices ?

Re: Software Giant Autodesk to Axe 13% of Global Workforce

#40

I worry that Soon there will be no real investment in "professional" software, the type with a learning curve that makes us more productive rather than more ad-addicted.

(Unlike Photoshop, AutoCAD, etc, most enterprise software is insanely arbitrary one-off stuff that essentially exists as hack for $megacorp to avoid teaching their non-devs any programming.)
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