New York: Software firm Adobe Systems Inc is
laying off 680 full-time positions worldwide, nearly 10 per
cent of its total workforce, as part of its cost cutting
initiative.
"We expect to eliminate approximately 680 full-time
positions worldwide," Adobe said in a regulatory filing adding
that workforce reduction would appropriately align its
costs in connection with its 2010 restructuring plan.
Adobe, the maker of Photoshop, Flash and Acrobat has an
employee strength of more than 7,000.
Because of the said layoffs, Adobe Systems would be hit
by pre-tax restructuring charges of USD 65-71 million, which
would be reflected in the fourth fiscal quarter.
"We expect to record approximately USD 18-20 million of
these charges in the fourth fiscal quarter ended November 27,
2009," Adobe said.
Majority of the restructuring plan would be completed by
the end of fiscal year 2010. "Substantially all of these
charges will result in cash expenditures," Adobe said.
However, employees of online business optimisation
software provider Omniture, which Adobe acquired in October
this year, would not be affected by the restructuring plan.
"Adobe expects to incur additional restructuring expenses
relating to Omniture's operations. These costs would be
included in the assumed liabilities of Omniture as of October
23, 2009 and would be recorded as part of the total
acquisition purchase price of Omniture," Adobe added.
Bureau Report
First Published: Wednesday, November 11, 2009, 17:22