LayOffs posts

TechCrunch, among other news outlets, reports that Adobe is cutting 680 employees as part of a restructuring plan. This is roughly 9 percent of the company's workforce. The news comes on the heels of Electronic Arts' decision to layoff 1,500 workers and a reduction of 600 from Adobe back in December. Adobe had purchased Omniture in September and reduced its workforce by 9 percent at that time.

The cost of restructuring for Adobe will total between $65 and $71 million, the TechCrunch article says.

The layoffs come just after Adobe announced that Flash Professional CS5 will be able to turn Flash projects into iPhone apps. The company has also recently released a version of its Photoshop.com Mobile app for the iPhone [iTunes link].

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.]

Remember a few weeks ago we wrote about National Semiconductor raking in the dough and handing out iPods to all their employees? Well, it looks like those iPods weren't a reward after all, but rather company equipment. National Semiconductor laid off 35 factory workers, which is odd given their huge profits but welcome to the 21st Century I suppose. Anyway, not only did these people lose their jobs but on the way out National Semiconductor said, 'Ah, yes and we'll be needing those iPods back, thanks!'

That's right, the iPods, according to the company, weren't gifts but rather company hardware. Sadly, many employees didn't know that and gave the iPods away, or sold them. Worry not laid off folks, you can just pay National Semiconductor $300 and they'll call it even.

Thanks, Anne.