Adobe Plans to Cut 300 Jobs, Reorganize

Adobe Systems Inc. said it will cut up to 300 jobs, or about 10% 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 52 cents per share, according to a First Call Corp. survey. In the year-ago third quarter, the company’s per share income was 55 cents per share. Adobe also said its revenue is likely to be in the $220-million to $225-million range, down slightly from $230 million the year before. The company said the restructuring will involve streamlining senior management, reorganizing operational divisions and reducing the worldwide work force by 240 to 300 regular employee and contractor positions. The announcement was made after markets closed. Trading in Adobe stock was halted after shares reached $30.81 on Nasdaq.