updated 08:00 pm EST, Tue November 8, 2011
Will 'restructure' business around digital media
Despite the fact that Adobe is expected to bring in record revenue in the fourth quarter of 2011, it has announced plans to eliminate 750 full-time positions, just under 11 percent of its employees, primarily in North America and Europe. The move is part of a "restructuring" of its business around "explosive growth categories" in its Digital Media and Digital Marketing products. Adobe has cut about 2,150 jobs in total since 2008, bringing it to just over 6,400 employees.
In 2008, the company blamed the global economic recession for a cut of 600 jobs (then about nine percent of its workforce), but went on to phase out 680 jobs in late 2009, and eliminate about 120 jobs from its acquisition of Omniture that same year. The new cuts will cost the company approximately 87 to 94 million dollars in pre-tax charges, according to documents filed with the SEC.
The company has been busy acquiring companies, including HTML5 mobile app developers Nitobi and TypeKit along with video web ad company Auditude and electronic contract and signature developer EchoSign. Adobe President and CEO Shantun Narayen says Adobe is "doubling down" on the Digital Media and Digital Marketing categories -- including reducing some enterprise solution product lines in favor of new subscription products in its Digital Marketing department, including its online ad testing service Adthenticate.
Adobe continues to expect to top $1 billion in revenue for the fourth quarter of 2011, which ends for the company on December 2nd, and which may top $1.125 billion. The company will webcast its financial results and analyst meeting tomorrow, November 9th, at 10 a.m. Eastern Time.