Adobe warns of shortfall, job cuts
The software maker says the global economic woes and weak demand for its just-launched Creative Suite 4 software is adding up to sluggish sales.
Adobe added its name Wednesday to the list of companies warning of weaker sales and.
In a press release, the company said it would slash 600 jobs amid less-than-anticipated demand for its recently launched Creative Suite 4 series of products.
"The global economic crisis significantly impacted our revenue during the fourth quarter," Adobe CEO 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."
The company said it now expects per-share earnings of 45 cents to 46 cents, on revenue of $912 million to $915 million for the three months ended November 28. The company had expected sales to come in as high as $955 million. The company said it expects revenue to drop further in the current quarter, with expectations now for revenue in the range of $800 million to $850 million.
The company said it will take pre-tax charges of $44 million to $50 million to account for the restructuring.
Among the things the company is apparently cutting: its booth at Macworld Expo.