Adobe axes 600 jobs, lowers sales outlook
Adobe will slash 600 jobs after it lowered its revenue outlook yesterday, citing the economic slowdown for less-than-impressive sales in the last quarter.
Stock tumbled seven per cent in extended trading on Nasdaq following Adobe’s announcement.
"The global economic crisis significantly impacted our revenue during the fourth quarter," said CEO Shantanu Narayenin. "We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities."
Jobs are expected to go in all geographic regions and company divisions to allow the software maker to hit its eight per cent workforce reduction target. The firm said it will swallow $44m to $50m in pre-tax charges, the majority of which will be recorded in its fiscal Q4 2008.
Adobe blamed sluggish sales of its new Creative Suite 4 family of products that began shipping in its fourth quarter in the US and Europe for putting a dent in the company’s expected revenue.
It expects Q4 adjusted earnings in a range of 59 cents to 60 cents a share - up from its previous forecast because Adobe benefited from two favourable tax items in the quarter.
The company revised down its revenue outlook for the fourth quarter ended 28 November to a range of $912m to $915m from its previous expectation of $925m to $955m.
Adobe said for Q1 2009 it expected to see revenue of $800m to $850m. ®