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.
Earlier this week Google announced that they’re planning to cut back their gigantic, 10,000 strong contractor workforce. While not every single member of that 10 large workforce will be fired, Google is reportedly looking to downsize as best they can.
Make no mistake about it, Google is going to let some people go. But, according to Google co-founder Sergey Brin, they’re looking to convert as many as they can to regular employees. Though, details like this are vague at the moment.
But fret not; this has nothing to do with the economic crisis (or so they say). According to Google spokeswoman “We have 10,000, and we have had a plan in place for awhile to significantly reduce that number. This is something we've been thinking about for awhile--six or seven months. It predates the most acute phase of the (present economic) crisis.”
Circuit City Stores Inc. might close 150 stores and opt for job cuts to stall its march towards bankruptcy, according to a WSJ report. Thousands of people might receive their termination letters, if there is any truth in this report. The retailer’s shares shot up by 20% on the back of this report.
Although the company’s spokesman Jim Babb refused to comment on the report, he admitted that the company was “assessing the productivity of our asset base.” With no signs of the ongoing financial storm relenting in the near future, the holiday season might not bring any relief for Circuit City – and its competitors. Apparently, the mess it is currently ensconced in has left Circuit City few choices.
Maximum PC readers (and anyone with an internet connection) are undoubtedly familiar with Wikipedia, the free online community-based encyclopedia with topics ranging from modern art to the history of vomiting. But what you may not realize is that a for-profit spin-off exists that continues to try and strike gold on the coattails of Wikipedia. But instead of being a cash cow, founder Jimmy Wale's is scrambling to save what might be a sinking ship.
Citing an un-named tipster, ValleyWag.com reports the 43-person company has laid off 30 percent of its staff, or almost a third of its employees. Word on the web is that Wikia is suffering significant losses in cash, in part because of offices located in San Francisco, New York, and Poland. It also doesn't help that potential cash makers like Wikia Search have proved unpopular, and without another $14 million cash infusion from investors like Bessemer Venture Partners and Amazon.com, Wikia might not be long for the web.
It's been a tough year for Yahoo, and it's Yahoo's employees who have been hit the hardest. Earlier this year the struggling search company had cut about 10 percent of its workforce, and now it appears another sizable chunk will be receiving pink slips.
The exact number of the impending cuts has yet to be decided, but according to The Wall Street Journal, it will be more than the 1,000 jobs the company announced it was cutting in January. Yahoo is expected to announce just how many it will be letting go during its earnings conference call tomorrow.
Jobs aren't the only thing being slashed at Yahoo. As part of its downsizing effort, operating budgets across the board are expected to be cut 15 percent. Meanwhile, Yahoo's share price has dropped more than 40 percent over the past three months, meaning this could be just the beginning.
Cheap memory prices are taking a toll on chip manufacturers, with Micron last week reporting a $344 million fourth quarter loss, the seventh quarter in a row the company has been in the red. The fallout of another quarterly loss was to fall on the shoulders of executives, who Micron said would see a 20 percent pay cut. Now it appears it won't be enough.
In addition to the high level pay cuts, Micron now says it plans to reduce its global workforce by about 15 percent. The job reduction is part of a restructuring plan and will be rolled out over the next two years with most of the cuts taking place in Boise, Idaho.
"The combination of declining customer demand and product oversupply in the marketplace has driven selling prices for NAND flash memory significantly below manufacturing costs," Micron said in a statement.
Because of this, IM Flash Technologies (IMFT), which is a joint venture between Micron and Intel, will stop producing NAND flash memory from Micron's Boise facility, a move that will reduce IMFT's flash production by about 35,000 wafers per month.
Perhaps the price war with a recently competitive ATI has taken a toll on Nvidia, or maybe the ongoing mobile GPU fiasco is to blame, but whatever the reason, it will come as little consolation to the 360 employees soon to receive a pink slip. The graphics chip maker said the job cuts will take place by the end of October, which will represent a work force reduction of more than 6 percent.
"Our action today is difficult, but necessary considering current business realities," said Jen-Hsun Huang, president and CEO of Nvidia. "Despite our reduction, we will continue to invest in selective high-growth opportunities like our revolutionary CUDA parallel computing technology and our Tegra mobile single-chip computer"
Huang went on to say the company will take "fast action" to restore its financial performance. In the meantime, Nvidia is expected to record $7 to $10 million in restructuring related chargers, comprised of severance and other expenses.
If Sony Ericsson were capable of self-fulfilling prophecies, it would wish it could take back its ominous profit warning issued in late June. The company said it would break even in the second quarter due to disappointing European sales of its mid and high-end mobile phones, but even that turned out to be wishful thinking as Sony Ericsson on Friday posted a staggering 97 percent drop in Q2 profits. To help weather the financial storm and reduce operational costs, the mobile phone maker plans to cut 2,000 jobs "within the next 12 months."
Sony Ericsson only shipped 24.4 million units in Q2, compared to Nokia's 122 million handsets in the same period, who on Thursday announced better-than-expected earnings. Relief doesn't appear to be in sight either, as SE indicated "challenging market conditions" would remain through the rest of the year.