By Vineetha Menon
Company will terminate 600 jobs worldwide amid poor fourth quarter earning predictions
Adobe Systems has announced restructuring plans that involve terminating 600 full-time employees worldwide as preliminary fourth quarter earnings showed tough days ahead.
The company believes its revenue will be $912 - $915 million for the fiscal fourth quarter this year, well below its target of $925 - $955 million. Weak demand for its new Creative Suite 4 products has been cited as the main case for the loss in revenue.
“The global economic crisis significantly impacted our revenue during the fourth quarter,” said Shantanu Narayen, president and chief executive officer, in a company statement. “We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities.”
A restructuring program that will involve the laying off 600 employees globally is expected to result in charges totaling approximately $44 million to $50 million, of which $28 million to $30 million will be recorded during the fourth quarter of 2008.
The company projects $800 - $850 million in revenue for the first quarter of 2009.
Adobe will release its official quarterly and year-end results for 2008 by mid-December.