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Adobe to cut 680 jobs

Bloomberg News

Adobe Systems Inc., the world’s biggest maker of graphic-design programs, plans to cut 680 jobs, or about 9% of its global workforce, as the company copes with a lingering sales slump.

Adobe will record $65 million to $71 million in pretax expenses, including costs for shutting offices and severance pay, according to a regulatory filing Tuesday. Adobe expects to report additional costs related to its $1.8 billion purchase of Omniture Inc. last month.

Adobe Chief Executive Shantanu Narayen is dealing with a slowdown in demand for software from advertisers and other creative professionals. The latest reduction follows a round of 600 job cuts in December 2008 that equaled about 8% of the San Jose company’s workforce.

Sales have been falling as customers delay buying the current version of Adobe’s Creative Suite, a collection of programs including Illustrator and Photoshop that accounts for more than 60% of revenue. The company is readying its next version of the software, called Creative Suite 5, to be released next year.

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Adobe bought Omniture to gain software that tracks the performance of websites and online advertising campaigns. Adobe plans to combine its programs that create media and websites with Omniture’s technology, Narayen said in September. The combination will help Adobe’s design customers devise online campaigns.


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