Adobe to cut jobs, results to just beat forecasts

Despite a forecast that quarterly earnings will top earlier estimates, Adobe Systems Iannounced yesterday it would cut 250 jobs and phase out its European headquarters in a restructuring move intended to focus the company more on e-commerce. Adobe said that it expected earnings for the second quarter, which ends today, to be slightly more than the 62 cents to 66 cents per share it estimated in March.

Despite a forecast that quarterly earnings will top earlier estimates, Adobe Systems Iannounced yesterday it would cut 250 jobs and phase out its European headquarters in a restructuring move intended to focus the company more on e-commerce.

Adobe said that it expected earnings for the second quarter, which ends today, to be slightly more than the 62 cents to 66 cents per share it estimated in March. Revenue is likely to be as much as US$246 million , or in the upper range of analyst's predictions, Adobe said in a statement that also announced the restructuring that will lead to layoffs of about 9 percent of its global workforce.

The restructuring, for which Adobe expects to take a $15 million [M] charge, includes plans to close the European headquarters in Edinburgh, Scotland. Adobe expects the charge to be offset by increased revenue brought in from a new e-commerce initiative related to the company's Web site at http://www.adobe.com.

Adobe, based in San Jose, California, makes graphic design, publishing and imaging software for print and Web production.

Adobe, in San Jose, can be reached at +1-408-536-6000 or at http://www.adobe.com.

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