IDG News Service - Hit by the global economic slowdown, Adobe Systems Inc. said Wednesday that it would cut 600 jobs and lowered its revenue expectations for the fourth quarter.
The job cuts will be made worldwide and account for about 8% of Adobe's total workforce, which stood at 7,623 at the end of September.
The economic slowdown led to slower-than-expected sales of Adobe's new Creative Suite 4 software package, which went on sale during the fourth quarter in North America and Europe, the company said. Creative Suite 4 includes products like Photoshop and Dreamweaver.
"The global economic crisis significantly impacted our revenue during the fourth quarter," Adobe President and CEO Shantanu Narayen said in a statement.
For its fiscal fourth quarter, which ended Nov. 28, Adobe said it expects its revenue to be between $912 million and $915 million, down from its earlier forecast of $925 million to $955 million. Profits will be higher than expected, however, at $0.59 to $0.60 per share before one-time charges; that would beat the consensus analyst estimate of $0.51 per share, according to Thomson Reuters.
The news caused Adobe's stock price to fall 7% to $20.95 per share in after-hours trading. Adobe is due to report its full results Dec. 16.
Adobe joins a growing list of technology companies, including SAP, Intel and Sun Microsystems, that have been hurt by the economic downturn.
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