Due to poor financial performance, the American software company Adobe is shutting down its Mainland China headquarters and many of its 400 employees will be dismissed, Caixin reports.
Adobe employees based in the company's Beijing office were summoned to a local hotel Wednesday morning for a 15-minute meeting during which they were informed that the majority of the staff would be dismissed.
About 30 employees will be reassigned to the offices in the U.S. and India, and only the sales department will remain in the mainland China market, said another report.
According to the Caixin report, employees were divided into five groups and given an envelop of different colors to differentiate the time of their last day at the company. Those who got green envelopes will be among the first batch and be let go in the end of October. However, some employees told Caixin that their severance package is based on the length of their services and monthly salary.
Adobe’s third quarter financial report, published September 17, said that the one percent growth fell short of expectations and net profit plunged to US $44.7 million, a 46 percent drop from the same period last year.
Meanwhile, employees told Caixin that the China branch didn’t carry on its tradition of recruiting fresh graduates this year due to poor performances.
In December 2012, Adobe shut down its Taiwan company and transferred business to its Hong Kong office.