Feeds

Adobe axes 600 jobs, lowers sales outlook

Recession bites

Designing a Defense for Mobile Applications

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. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.