Software maker Autodesk plans to cut 1,150 jobs, or 13% of its workforce, as it shifts focus to selling its products on a subscription basis instead of mostly charging for them upfront.
Shares in the company fell 10.4% in after hours trading on Tuesday to $116.10 following the announcement.
“Through the restructuring, Autodesk seeks to streamline the organization and re-balance resources to better align with the company’s priorities,” Autodesk said in a statement.
Autodesk’s software like its 3-D imaging AutoCAD is widely used by architecture, construction, and manufacturing firms. The plan is to get customers to pay monthly subscription fees for the software, eliminating some of the initial cost.
Autodesk, based outside San Francisco, said the job cuts would cost it $135 million to $149 million.
In addition to announcing the layoffs on Tuesday, the company reported 5% growth in third-quarter revenue to $515 million. Losses narrowed to $119.8 million from $142.8 million.
The cuts disclosed on Tuesday follow a previous layoff, announced in February 2016. Those cuts impacted 925 workers, or 10% of the overall workforce.