Adobe to cut jobs, reorganize
SAN JOSE, Calif., Aug 11 (Reuters) - Adobe Systems Inc. (ADBE - news) said Tuesday
that it will cut up to 300 jobs, or around 10 percent of its worldwide staff, as part of a
broader restructuring aimed at lowering expenses.
The announcement came as the desktop graphics software company said it expected third quarter results to be significantly
below expectations.
Adobe said its third quarter net income, after a one-time restructuring charge, ''may approach break-even or a loss'',
compared with net income of $53.4 million in the year-ago quarter.
This latest forecast compares with a consensus estimate for a third quarter profit of $0.52 per share, according to analysts
surveyed by First Call. In the year-ago third quarter, the company's per share income was $0.55 per share.
Adobe also said its revenue will likely be in the $220 million to $225 million range, down slightly from $230 million the year
before.
''These expected results are unacceptable,'' Chairman John Warnock said in a statement.
''The actions taken today are intended to position the company for long-term growth and improved financial results.''
The company said the restructuring will involve streamlining senior management, reorganizing operational divisions and an
anticipated worldwide workforce reduction of 240 to 300 regular employee and contractor positions.
The company expects the move to cut expenses by about $50 million ot $60 million a year.
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