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Adobe trimming Expo budget, 600 jobs [updated]

Macworld notes today that Adobe won't have a booth at Macworld Expo, but will still be offering training sessions at the conference. Traditionally, Adobe's booth has been a major presence on the show floor.

The bad news might not end there: A tipster with purported connections inside Adobe told us that the company is considering laying off a significant fraction of its nearly 7,000 employees, including management.

  • Update 4 p.m.: The axe fell a few hours ago at Adobe, according to two three former employees, but we don't know how widespread the damage is.
  • Update 5 p.m.: Mike Downey, principal evangelist for the Flash, Flex and AIR products is "no longer with Adobe."
  • Update 5:10 p.m.: Adobe issued a press release: "Adobe also announced the implementation of a restructuring program, and has taken steps to reduce its headcount by approximately 600 full-time positions globally. The restructuring will result in anticipated pre-tax charges totaling approximately $44 million to $50 million. The Company expects approximately $28 million to $30 million of the restructuring charges to be recorded in the fourth quarter of fiscal year 2008." Read the full press release here.

This points to some serious, knee-jerk cost-cutting at Adobe, since Macworld Expo has been so valuable to Adobe's relationship with the Mac user base in the past.

"Adobe has decided to shift its focus at the Macworld trade show this year," the company said in a statement given to Macworld magazine. "Macworld [Expo] is a valuable industry show and we will still be an active part of it with members of our product team involved in Macworld tracks, including a full day of CS4 demo sessions with Adobe evangelists on Wednesday, January 7."

Adobe Creative Suite 4 was released in October.

[Via O'Grady's PowerPage.]



Macworld notes today that Adobe won't have a booth at Macworld Expo, but will still be offering training sessions at the conference....
 

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Dave s

CS4 is pretty average not worth the upgrade for most users.

January 11 2009 at 7:27 PM Report abuse rate up rate down Reply
Abbi Vakil

There must be more to it than meets the eye. I'm not even sure what Adobe will save by backing out @ this point? Let's think about it: we are 30 days away from the show. A Fortune 500 company doesn't wait til the last minute to prepare booth materials. Most everything would have been prepared and ordered by now. So the booth materials, construction, graphics and prep work are sunk costs already. The only money they can save is the cost of renting the booth space which is not even $100K (I'm not sure how they would back out of their contract but let's say that Macworld gives them special privileges). Since Adobe is local, they don't have any travel costs. Nor do they have any hotel costs. Unless they have no one left in marketing, they shouldn't have any extra employee costs either. What does it say about Adobe's finances when they can't afford to spend $100K to exhibit @ Macworld? Business must be really down if they have to resort to such cost cutting measures...

December 04 2008 at 11:01 AM Report abuse rate up rate down Reply
2 replies to Abbi Vakil's comment
Taylor

I doubt Adobe just cancelled their booth. I think they decided a while ago not to show up at Macworld... especially given their past record as noted above.

December 04 2008 at 11:31 AM Report abuse rate up rate down Reply
Abbi Vakil

Floor plans from a few weeks ago show a giant space w/ Adobe's name on it. Seeing as how not too many people predicted the events of Oct/ Nov, its more likely that these are recent changes to their marketing plans, otherwise it would be pretty unfair of IDG to reserve the best up front spaces for non-paying vendors. FYI, Adobe is not the only big name vendor to back out of Macworld- Seagate, Xtrememac & Belkin are also no longer exhibiting @ the show & their names were on the same floor plan too

December 04 2008 at 4:16 PM Report abuse rate up rate down Reply
Kent

I have purchased Adobe products for so many years. Clear back to their beginning. I have been very frustrated with their upgrade costs. Also, several times in the past they have dropped support on their product far too early in it's life cycle. Recently, I was going to upgrade and found I had waited too long. I then downloaded Pixelmator and found it did what I was needing. I gave it a very hard test. Multiple large files open many other large programs open at the same time. I performed doxens of undos and redos. Applied filter after filter and then undo each. It did not break and no wierd things left over. I have been saying for years Adobe was in trouble. Now others are agreeing with me.

December 04 2008 at 8:25 AM Report abuse rate up rate down Reply
Taylor

This is how recessions and depressions work.

Spending goes down.
Jobs get cut.
Spending goes down more.
More jobs get cut.

ad nauseum.

December 03 2008 at 9:59 PM Report abuse rate up rate down Reply
staniks

Now you all feel bad for pirating CS3 and CS4?

:)

December 03 2008 at 9:03 PM Report abuse rate up rate down Reply
Keil Miller

They could always lower thier prices and make the suite not feel like a windows port. It might stimulate sales. Just an idea.

December 03 2008 at 6:48 PM Report abuse rate up rate down Reply
1 reply to Keil Miller's comment
Stealth43

Thats just crazy talk

December 03 2008 at 10:52 PM Report abuse rate up rate down Reply
Dave

"considering laying off a significant fraction"

I love that. I know we all understand what's being said is phrased in a nice, politically correct way, but that sentence could also mean, "A sufficiently great tiny amount."

That's like the time I read on CNN, "Scientists have discovered the first concrete evidence that there might be life on other planets." ;-)

December 03 2008 at 4:22 PM Report abuse rate up rate down Reply
2 replies to Dave's comment
Robert Palmer

I see what you mean ... I meant "significant" not to describe the size of the fraction but instead to describe the importance of the workers at Adobe. Anytime you lay people off, there are hard decisions that have to be made to let go of important people.

The fraction, incidentally, that we're hearing so far is around 10 percent, which is not large, objectively, but still very painful for Adobe employees and their families. Can't confirm that yet, though.

December 03 2008 at 4:32 PM Report abuse rate up rate down Reply
Dave

I hear what you're saying.. I've been a part of similar decisions (both making them and receiving them). It's never easy. Well, depending on the employee it sometimes is, but overall it's not.

December 03 2008 at 4:40 PM Report abuse rate up rate down Reply
Filozzrd

What is happening to the traditional MacWorld hype from Apple? I expected to hear/read some notice by e/m or mailed form this year, and now I have missed any "early bird" deadline (12.01.08).
Aside from Adobe, how many other exhibitors have changed plans? Enquiring minds need to know...

December 03 2008 at 3:54 PM Report abuse rate up rate down Reply
1 reply to Filozzrd's comment
Craig

MWE early bird pricing was extended to the 8th.

December 03 2008 at 11:39 PM Report abuse rate up rate down Reply
Patrick

I'm guessing that Adobe figures they're preaching to the converted at Macworld, so in really tight economic times, why bother spending a bundle on people you already have in your pocket? I don't think anyone's going to think, Hey, I'm not going to upgrade to CS4 because Adobe didn't show up at Macworld.

December 03 2008 at 3:22 PM Report abuse rate up rate down Reply
kjacobi

Once the dust settles, Apple should buy them. They have plenty of cash.

December 03 2008 at 3:08 PM Report abuse rate up rate down Reply
4 replies to kjacobi's comment
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