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Software maker Adobe to lay off 600 workers

(Xinhua)
Updated: 2008-12-04 09:43

LOS ANGELES -- Adobe Systems, a software maker in Silicon Valley, is laying off 600 employees and will restructure its business, the company announced on Wednesday.

The layoffs, which will affect all regions and business units, are in progress and represent 8 percent of Adobe's global workforce, a company spokeswoman said.

"The global economic crisis significantly impacted our revenue during the fourth quarter," Adobe's president and chief executive officer, Shantanu Narayen, said in a statement. "We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities."

Narayen said the chief cause of Adobe's problems is weaker than expected demand for the company's latest software, Creative Suite 4, which began shipping in October.

The suite combines several tools used by illustrators and designers and is central to Adobe's plans to create software that can connect the Web with PCs and phones.

Adobe also lowered its preliminary financial results for its fourth fiscal quarter ended November 28.

The company is now expecting fourth quarter revenue of US$912-915 million, down from US$925-955 million.

For the current quarter, Adobe expects revenue of US$800-850 million and is targeting an operating margin of 26 percent to 28 percent.