Adobe to Lay Off 750 Workers in Restructuring
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Adobe Systems announced a company restructuring that will result in the loss of about 750 jobs, primarily in North America and Europe.
On Nov. 8, the San Jose, Calif., maker of content authoring solutions that enable customers to create, distribute and monetize digital content provided a business update for its fourth-quarter fiscal year 2011, ending Dec. 2, 2011. Adobe announced plans to further align its business around the growth categories of digital media and digital marketing solutions.
Adobe said it is investing aggressively in digital media and digital marketing, two growing market areas. In digital media, the company is an 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 officials said.
An Adobe press release on the moves said:
"In order to better align resources around digital media and digital marketing, Adobe is restructuring its business. This will result in the elimination of approximately 750 full-time positions primarily in North America and Europe. We expect to record in the aggregate approximately $87 million to $94 million in pre-tax restructuring charges. Included in these charges are (i) approximately $17 million to $19 million primarily related to the consolidation of leased facilities and (ii) approximately $70 million to $75 million related to employee severance arrangements. We expect to record approximately $73 million to $78 million of these charges in the fiscal quarter ending Dec. 2, 2011."
With about four weeks remaining in the quarter, the company believes it will achieve fourth-quarter revenue within the $1.075 billion to $1.125 billion range it previously provided on Sept. 20, 2011, Adobe said.
"We expect to report record revenue within the fourth-quarter target range we previously issued," said Mark Garrett, executive vice president and CFO of Adobe, in a statement.
Adobe will hold its 2011 Financial Analyst Meeting on Nov. 9 in New York. At the meeting, the company plans to outline the strategy and goals for its business realignment and provide more detail on what is involved and the reasons behind the restructuring. The company also will further discuss its digital media and digital marketing growth strategies.
Adobe's digital media growth strategy revolves around its recently announced Creative Cloud and will enable the company to rapidly deliver new product capabilities and services, penetrate untapped market segments, and increase overall engagement with customers, the company said.