Business | Technology

Channel Sponsor

Adobe lowers outlook, axes 600 jobs

Adobe Systems Inc on Wednesday lowered is revenue outlook and said it will eliminate 600 jobs, or around 8 per cent of its workforce, due to the weak economy, sending its stock down 7 per cent.

  • Reuters
  • Published: 23:46 December 5, 2008
  • Gulf News

San Francisco: Adobe Systems Inc on Wednesday lowered is revenue outlook and said it will eliminate 600 jobs, or around 8 per cent of its workforce, due to the weak economy, sending its stock down 7 per cent.

"The global economic crisis significantly impacted our revenue during the fourth quarter," said Shantanu Narayen, the company's chief executive, in a statement. "We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities."

Adobe spokeswoman Jodi Sorensen said it would be an across-the-board headcount reduction, impacting all geographic regions and company divisions.

The maker of Acrobat Reader, Flash and Photoshop software took its revenue outlook for the fiscal fourth-quarter ended November 28 to a range of $912 million to $915 million from its earlier view of $925 million to $955 million.

The company also said it expects fourth-quarter adjusted earnings in a range of $0.59 to $0.60 a share, higher than its previous forecast, as it benefited from two favourable tax items.

For the February quarter, Adobe forecast revenue of $800 million to $850 million, well below analysts' forecast range of $846 million to $1.02 billion, according to Reuters Estimates.

Adobe cited weaker-than-expected demand for its new Creative Suite 4 family of products, which began shipping in the quarter, as the main cause of the revenue shortfall.

CS4 is a package of tools for graphical designers that includes Photoshop, Illustrator, Dreamweaver and Soundbooth.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Technology

  1. 10 best internet moments of the decade

  2. Microsoft continues anti-piracy efforts in the UAE

  3. Acer retains top ranking despite decline in market

  4. When the Web lives worldwide

All articles in Technology

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice