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Autodesk to Cut 10 Percent of Work Force

Autodesk has announced they will cut 750 jobs, or about 10 percent of their staff, according to wire reports.

A release on iStockAnalyst said Autodesk will "consolidate certain facilities as part of a plan to reduce operating expenses."

The 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.

This restructuring should 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.

Carl Bass, president and CEO 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 of last year, Autodesk reported a 23 percent increase in net income, to $104.5M for the third quarter, up from $84.8M in the 2007 third quarter.