Adobe cuts 750 jobs; reaffirms Q4 revenue target
Adobe is cutting 750 jobs at its branches in North America and Europe as it "restructuring its business."
As part of that restructuring, Adobe is realigning its resources elsewhere, as explained in a statement released on Tuesday afternoon:
Adobe is investing aggressively in Digital Media and Digital Marketing, two growing market areas. In Digital Media, the company is the industry leader in content authoring solutions, enabling customers to create, distribute and monetize digital content. In Digital Marketing, the company intends to be the leader in solutions to manage, measure and optimize digital marketing and advertising.
Adobe executive vice president and CFO Mark Garrett added in a separate release, "We believe that by focusing resources on two large initiatives and shifting our business model, we can drive faster and more predictable growth in FY2013 and beyond."
Basically, this means more of an investment in resources for Flash (or, possibly more importantly, HTML5) on tablets and smartphones as development for mobile devices and apps for them ramps up exponentially.
Adobe made a similar restructuring and layoffs move in 2009 when it cut 680 full-time positions worldwide as part of a plan that cost between $65 million to $71 million in pre-tax restructuring charges.
However, despite (or because of) this major loss to the employee base, Adobe is reaffirming its revenue target for the fourth quarter of 2011, which falls between $1.075 billion to $1.125 billion with a per share range of $0.57 to $0.64, as previously provided on September 20, 2011.
Official fourth quarter earnings results will be posted on December 15.
Related: