We’ve been hearing rumors of Adobe layoffs all day, and the company just released a statement announcing that it is ‘restructuring’ its business, which will result in the elimination of 750 jobs in North America and Europe.
From the release: In order to better align resources around Digital Media and Digital Marketing, Adobe is restructuring its business. This will result in the elimination of approximately 750 full-time positions primarily in North America and Europe. We expect to record in the aggregate approximately $87 million to $94 million in pre-tax restructuring charges.
As mentioned above, the company will be focusing around what it calls the ‘explosive growth categories’ of its Digital Media and Digital Marketing products.
It wasn’t all bad news for Adobe, as the company says it expects to report record revenue in the fourth quarter, with the range expected to be between $1.075 billion to $1.125 billion (which was revealed in its third quarter earnings report).
Adobe last implemented a major round of layoffs a few years ago with a cut around nine percent of its workforce in 2009. This restructuring appears to affect around 8 to 9 percent of the company’s workforce.
In a separate release, Adobe emphasized the continued development of its Creative Suite software, a greater investment in HTML5, enhancing digital publishing solutions, investing in media monetization (the company just acquired Auditude) and increasing focus on electronic contracts and signatures through the recent acquisition of EchoSign. This will be combined with offering marketers better solutions as well.
“Our mission is to produce the world’s content and maximize the impact of that content,” said Adobe president and CEO Shantanu Narayen in a statement. “Adobe is doubling down in the Digital Media and Digital Marketing categories, markets rich with opportunities for innovation and growth.”
In terms of revenue, in Digital Media, the company says it expects to attract new customers and increase recurring revenue through its new subscription offering. In order to drive increased Digital Marketing bookings, the company will reduce its investment, and expected license revenue, in certain enterprise solution product lines.