Adobe To Layoff 750 Workers, Will Shift Focus Digital Media and Marketing
Adobe, Inc. will lay off 750 full-time employees in the coming months and shift their focus towards digital media and marketing.
In a press release on Tuesday company officials say their restructuring will result in pre-tax charges in the vicinity of $87 million and $94 million. Among those charges are $17-$19 million related to consolidating leased facilities and $70 million to $75 million related to employee severance packages.
The 750 layoffs will be spread across all business units and geographies, units which at the end of Q3, 2011 covered 10,041 workers.
Known best for their flash player and Creative Suite applications the company said in a second press release that it plans to continue building the Creative Suite program while expanding “tablet-based touch apps” and cloud-based software.
Adobe officials also plan to develop more technology around HTML5 which will be integrated into their tools including Dreamweaver.
Even with layoffs and restructuring plans company executives still plan to meet previously projected Q4 numbers of $1.075 billion and $1.125 billion which was announced before restructuring plans were revealed.
During extended trading Adobe shares slid from $30.42 to $27.62 on the Nasdaq.
Further information will be released by Adobe officials during a conference on Wednesday. Are you surprised by the company’s decision to cut out 750-workers from their base?