Adobe to cut 9 percent of workforce
Wednesday, November 11, 2009 11:18 AM
Adobe Systems expects to cut 680 full-time employees, or about 9 percent of its global workforce, as the company tries to align costs in the face of lagging sales.
The layoff, which was disclosed Tuesday in aregulatory filing with the U.S. Securities and Exchange Commission, marks the second wave of job cuts in the past year. In December, the company said it would slash 600 jobs amid less-than-anticipated demand for its recently launched Creative Suite 4 series of products.
The cuts will affect only those workers who were Adobe employees before the US$1.8 billion acquisition of Web analytics firm Omniture in September. They are separate from an earlier-announced 9 percent workforce reduction within the Omniture unit, which had about 1,200 employees at the time of the acquisition.
Adobe, which is best known for its Photoshop and Illustrator software titles, said it expects to record about US$65 million to US$71 million in pretax restructuring charges.
"Adobe is restructuring its business to align costs with its fiscal 2010 operating plan and budget, the company's three-year strategic priorities, and the realities of the business environment, as well as to ensure its ability to continue investing in long-term growth opportunities," Adobe said in a statement.
In September, Adobe reported that its fiscal third-quarter profit fell 29 percent amid declining sales.
This article was first published as a blog post on CNET News.
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