Adobe Sees Sluggish Sales, Sacks 600 Employees
Posted 12/04/08 at 09:58:20 AM | by Paul Lilly
Unhappy holidays are ahead for 8 percent of Adobe's workforce. That translates to 600 full-time employees who, instead of receiving a Christmas bonus, will instead be handed a pink slip.
The news comes amid lackluster fourth quarter earnings, which the company said would be between $912 million to $915 million, less than the $925 million to $955 million from its previous outlook. It's also less than what Wall Street was predicting, which had the company pegged to pull in $930 million.
Adobe blamed the situation on weaker than expected demand for its Creative Suite 4 (CS4), calling it "the main cause for the shortfall in fourth quarter revenue." It all leads to restructuring for Adobe, and the company said it would take $44 million to $50 in pre-tax charges.
But Adobe has its work cut out for it, as 2009 doesn't look to be shaping up any better. The company is currently projecting revenue for Q1 2009 to be between $800 million to $850 million. Meanwhile, Wall Street had predicted the company would fare a bit better to the tune of $846 million to $1.02 billion.
Image Credit: Adobe
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Suprised, adobe?
Submitted by Spider-Mom on Fri, 2008-12-05 00:29
How about instead of laying off 600 people you lower the damn prices? Adoption has been fine its just a matter of how meny people paid for it. Also, this new suit comes with allot of great new stuff. I think this is where there going to intorduce 64bit stuff, on the PC then much latter on the mac with Pre Pro and the PS. The GPU rendering in PS is cool and so is the 3d stuff. That will take a little longer for people to get used to than just different colors in the UI like they have done before.
But still, 1000$? Get real if you think you can keep those prices.
Well both CS3 and CS4 were
Submitted by atomaweapon on Thu, 2008-12-04 14:27
Well both CS3 and CS4 were plagued with a myriad of problems when they launched. Install nightmares, "clean up" scripts, random services installing, etc. After the CS3 fiasco people likely looked for alternative software packages. The true design professionals will likely not have a true alternative at the moment, but non-design businesses will look to other things like Corel or open source alternatives. Even some passing designers have probably switched to corel or have just chosen not to upgrade till Adobe really tightens up it's suite. I know photoshop, etc have always been expensive, but 2500 bucks is pushing it.
Submitted by Shalbatana on Thu, 2008-12-04 10:57
That's because no one wants to be forced to buy 10 programs at once for $8000!!!
The suite line is a great idea, especially for professionals, but it should not be the only way. Sometimes companies only want (or can afford) to update one program at a time. And if you're a solo user, how can you save that much for a suite?
Adobe, you're a great company with great programs. We're all loyal fans and can't ever wait for the next set of features.
It's not a lack of demand guys.
_______________________________
"There's no time like the future."
exactly, when the shoftwhere
Submitted by nekollx on Thu, 2008-12-04 11:12
exactly, when the shoftwhere cost as much as a new computer theres a problem and its not with the consumers. Hell CS4 costs more that Vista Ultimate! the OS you need to run ANY PROGRAM
Submitted by winmaster on Thu, 2008-12-04 19:07
"...Vista Ultimate! the OS you need to run ANY PROGRAM" Gee, my XP Pro install seems to run any program as well. You don't need to spend $400 on an OS. Even if you feel you just need Vista, I'm sure Home Premium would also run "ANY PROGRAM"
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The quick brown fox jumps over the lazy dog.
Submitted by nekollx on Thu, 2008-12-04 20:20
i was usingVista Ultimate cause its the most expensive OS out there. And even withthat as a Base CS 4 costs MORE!
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