US Report: Adobe orders management shake-up, layoffs

Summary:Adobe Systems on Tuesday announced plans to eliminate as many as 300 jobs as it warned that third-quarter results would fall considerably short of analysts' estimates.

Company officials now expect sales of between $220m (£134m) to $225m (£137m) in the third quarter. After a one-time restructuring charge, and other non-recurring expenses, net income may approach break-even or a loss in the 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. "These expected results are unacceptable," said Adobe CEO John Warnock in a prepared statement. "The actions taken today are intended to position the company for long-term growth and improved financial results."

In an effort to get its house in order, Adobe also announced a management shakeup that left three top executives looking for work at day's end. Chief Administration Officer P. Jackson Bell, Marketing VP Robert Roblin and Products Division VP Ross Bott all have tendered their resignations.

Adobe shares closed off 1 3/8 to 30 13/16 Tuesday.

An Interview with Alasdair Boyle, Adobe UK MD will follow at 12pm.

Topics: Emerging Tech

About

Larry Barrett is a freelance journalist and blogger who has covered the information technology and business sectors for more than 15 years. Most recently, he served as the online news editor for 1105 Media's Office Technology Group and as the online managing editor for SourceMedia's Investment Advisory Group publications Financial Pl... Full Bio

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