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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.

Ina Fried Former Staff writer, CNET News
During her years at CNET News, Ina Fried changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley.
Ina Fried

Adobe added its name Wednesday to the list of companies warning of weaker sales and cutting jobs.

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.