Adobe Cuts 600 Jobs, Warns of Shortfall Amid Financial Crisis

 
 
By Darryl K. Taft  |  Posted 2008-12-04 Email Print this article Print
 
 
 
 
 
 
 

Design tools maker Adobe announced preliminary results much lower than expected for its fourth quarter, prompting a restructuring and the elimination of 600 jobs. Adobe officials said weak demand for the company's Creative Suite 4 family of products ?ö?ç?? which just began shipping during the quarter -- hurt fourth-quarter results.

Adobe Systems provided preliminary financial results for its fourth quarter and said the company has fallen short of projects and will eliminate 600 jobs.

Adobe, maker of popular design and development tools for creative professionals,  said preliminary results for the fiscal fourth quarter ended Nov. 28 show revenue of between $912 million and $915 million, well below the $925 million to $955 million the company projected. 

"The global economic crisis significantly impacted our revenue during the fourth quarter," said Shantanu Narayen, the company's chief executive, in a statement. "We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities."

The company cited weaker-than-expected demand for its new Creative Suite 4 family of products that began shipping in the fourth quarter in North America and Europe as the main cause for the shortfall in fourth-quarter revenue.

Adobe also announced a restructuring, resulting in the loss of 600 jobs, or 8 percent of its work force.

Moreover, the restructuring will result in anticipated pre-tax charges totaling approximately $44 million to $50 million, Adobe officials said. The company expects approximately $28 million to $30 million of the restructuring charges to be recorded in the fourth quarter of fiscal year 2008.

Meanwhile, according to published reports, Adobe will not be exhibiting on the show floor at the Macworld Conference & Expo 2009 to be held in January. 

 


 
 
 
 
Darryl K. Taft covers the development tools and developer-related issues beat from his office in Baltimore. He has more than 10 years of experience in the business and is always looking for the next scoop. Taft is a member of the Association for Computing Machinery (ACM) and was named 'one of the most active middleware reporters in the world' by The Middleware Co. He also has his own card in the 'Who's Who in Enterprise Java' deck.
 
 
 
 
 
 
 

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