Autodesk to Cut 750 Jobs

By MIKE BARRIS

Software maker Autodesk Inc. reduced its earnings outlook again and said it will eliminate 750 jobs, or about 10% of its work force, as it continues to cut costs.

The company's share price has plunged since late September amid warnings that sales difficulties in the U.S. were spreading internationally.

The maker of the popular AutoCAD design software used by engineers and architects also said it agreed to spin out its location-services unit to private-equity firm Hale Capital Partners as it focuses on its core business. Terms were not disclosed.

The restructuring aims to save $130 million annually, starting in the fiscal year that kicks off Feb. 1. The job cuts, which Chief Executive Carl Bass called "prudent" given current economic uncertainty, follow a hiring freeze, business-travel restrictions and other cost reductions.

Some two-thirds of the expected $65 million to $75 million in restructuring charges will be recorded in its fiscal fourth quarter, which ends Jan. 31.

For the period, Autodesk now expects earnings, excluding charges, of 18 cents to 24 cents a share on revenue of $475 million to $500 million. The company in November cut its forecast to earnings of 28 cents to 34 cents a share on revenue of $525 million to $550 million.   

Write to Mike Barris at mike.barris@dowjones.com