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Wed, 11 Nov 2009 Adobe cuts 680 staff, 9 per cent of its workforce, in cost cutting measures

It will be the company's second wave of job cuts in about a year

James Niccolai

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Adobe Systems will lay off 680 staff, or 9 per cent of its workforce, in its latest move to cut costs, the company confirmed on Tuesday.

The job cuts will be made worldwide and are designed to bring Adobe's costs in line with its 2010 budget and "the realities of the business environment," the company said.

Adobe also reduced the workforce at Omniture, which it has just acquired, by 9 percent at the close of that acquisition, a spokeswoman said.

Messages about the layoffs started appearing on Twitter earlier Tuesday.

Adobe announced a previous round of layoffs last December, when it said it would cut 600 jobs worldwide to reduce costs. It said the recession had been causing slow sales of its Creative Suite 4 software, which it launched last October.

Its business has continued to lag this year, even as its stock price rose along with the broader market. In September the company posted third-quarter profits of $136 million, down from $191.6 million in the third quarter of 2008. Revenue also fell, to $697.5 million from $887.3 million a year earlier.

This latest restructuring will result in pretax charges of $65 million to $71 million, including about $50 million for severance payments and $18 million to consolidate leased facilities, the company said.

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Comments received


CB said on Wed, 11 Nov 2009

Maybe if they made their software harder to pirate more of their user base would be paying for their products.

Anon said on Wed, 11 Nov 2009

If they reduced their prices - more people would buy their software.

Boyd said on Wed, 11 Nov 2009

Fair point, they really should develop a casual user version of design suite for a reasonable price. The student version is available for approx £300 (which is a little steep, £150 sounds more like it) but a home version is required for non students who wish to learn how to use the software in it's native environment.

Boyd said on Wed, 11 Nov 2009

Fair point, they really should develop a casual user version of design suite for a reasonable price. The student version is available for approx £300 (which is a little steep, £150 sounds more like it) but a home version is required for non students who wish to learn how to use the software in it's native environment.

Steve said on Wed, 11 Nov 2009

If they didn't try to screw people over with their completely outrageous prices, perhaps they would get more business.

Baz said on Thu, 12 Nov 2009

"The realities of the business environment" - indeed companies with overpriced products and poor service are usually the ones that suffer. There was a time when Adobe was an exciting company. All it does these days is Adobe Office for designers.

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