Today, Adobe announced it would lay off 600 workers, or 8 percent of its total headcount. The recession is forcing it to reduce its sales forecasts for the next two quarters. No wonder it canceled its booth at Macworld. When the big guys are hurting, everybody hurts.
That brings our Layoff Tracker up to 76,000 tech jobs lost since late August. Adobe joins Leapfrog, which announced on Monday it will cut 70 people (10 percent) and Trutap, which will let 25 people go (80 percent) and is looking to sell the remains of the company.
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looks like most of the companys are running out of ideas which can generate revenue!!! Its time to fight back and think smart.
Can’t say I’m surprised. Even large companies like Adobe are not immune to the market pressures these days.
I agree with Chandra, it’s time to start re-thinking how we do things - time to cut the fat and work smart. Perhaps not trying to be all things to all people as Adobe has would be a good place to start.
adobe can go to hell with their overprice products they are ea sports of their niche minor updates but charging a lot for it.
With numbers like this it’s easy to jump on the doom and gloom wagon, but what’s the other side? Do we have a net figure anywhere? How many gains during the same time period? I know times are tough, but aren’t we better served by a fuller picture in times like this? We need that other figure too to know how the job market’s really doing. How long before the average Joe the Programmer gets a new gig? Is it on balance a better one? Those stats might be useful too.
It is a shame that there is so little long term planning in this country. There are too few contingency plans for times like this, and too little creativity to go around.
Adobe makes very cool products that allow creative people to conjure spectacular virtual worlds on the web. More than ever, Adobe should push a profit model: Design a game, we will highlight it, and take 5% of your profit, etc. They should be advertising more than ever during these bleak times. Create more of a populace that will sit down with a book and a software program, do their own thing, and not rely on banks and manufacturers for jobs.
I understand, much easier said than done, but that is how I would proceed.
I get very cynical when I see things like this.
Adobe has made bucketloads of money for decades. Now, there’s a downturn, and they lay off almost 10% of their workforce. Some loyalty.
In many cases companies doing this aren’t even in danger of losing money if they don’t do the cuts … just in danger of making less money.
Consider Toyota, which is being hit hard by the economic downturn, but is NOT LAYING OFF ANY WORKERS. Instead, it’s taking the time to retrain, add skills, and learn how to be even better at their core competency.
Here’s the deal:
As every company lays off x% of their workforce, the bad economy becomes a self-fulfilling prophecy. It’s bad so we’ll lay off some workers so it gets worse …
This man-made catastrophe just keeps on giving, doesn’t it?
That shows that Asian people have a heart. Americans, on the other hand,….
Sure, many Asians have a heart.
But while you’re making sweeping generalizations, let’s not forget the systematic brutality and murder by the Japanese in many countries they invaded during WWII, or the grotesque response to the Tiananmen Square protests by the communist Chinese government, or their current day treatment of works for that regard. What about the brutal regime that still exists in Myanmar today? Or the Thais who can’t seem to elect a stable government and rely on the military to enforce “democracy” and resolve corruption charges?
American corporations using layoffs as way to preserve profits might not seem as heartless in comparison?
Holy sh1t. I feel fortunate to be amongst California’s tech employed
wow … this is really getting crazy now, the least such companies can do is drop them via a limo party bus for their last rides from their respective offices
it really hurts man!
I hope those layoffs are mainly in the Customer Service / Sales department. I’ve talked to a dozen or so people there over the last 2 months to get an order straightened out, ALL of the clueless and useless.
It’s getting to the point which it’s barely news when a company lowers revenue guidance X% and then cuts about the same X% of its workforce …
Hey Adobe. Drop your prices.
Thanks,
Shaun
well if adobe cut thier prices to the same level as the us in europe they would get a bump in sales. I am looking at cs4 but not willing to get it yet but if it was the same as the us price I would of bought it.
Pricing and bundling has gotten ridiculous for CS4. New feature benefits start to go asymptotic but pricing keeps increasing. CS4 can no longer drive the company. They had a great opportunity with Flash, and still do, but must work hard to increase programmer productivity and performance — something they (Macromedia then Adobe) ignored for many years while focusing on new video codecs (which was obviously a good thing, but they needed to do both). Acrobat was a great product around version 5-6, but it has just gotten so bloated now. Many people hate it. They simply rape Europe with price deltas that are absurd vs. US. There are some truly great products and people there, but they are not a growth company if they continue to pursue their current path. I no longer even check to see if I should upgrade. Keep Flash current, and wish I could upgrade my other apps — I believe I own every one. But:
1) Hard to justify price.
2) Am against the price/upgrade levels on principle.
Wonder what their price elasticity is. I’m guessing with CS4 upgrades the increase in volume would substantially cover the reduction in price. They’ve painted themselves into this “high price” corner though, and probably don’t realize it (I’ve hardly ever seen a tech company that has a handle on their products’ elasticities.)
Good friends being let go there. Excellent company and this is a heartbreaker. San Francisco is getting hammered.
If you’re business model and policies involves overpricing for the little guys – when the little guys have little money, you get none of it.
Adobe has not been loyal to it’s users (and now to it’s employees), but I guess that comes with the territory of being part of corporate America.
I luv adobe products. heck I make a livin out of erm..Sad to see them struggle.
So they used them just to make CS4 and then kicked them to the side of the curb huh?.. Yeah Adobe, it sure was some splendid year huh.. 09.23.08 will never be forgotten lol. What do you think guys? Did they give em’ the boot or what? It’s kind of like that girl you think you’re dating but really: she is just leading you on. Lol, thanks for the good stuff TechCrunch
-YesWeCandles
Adobe is in trouble, that ship is sinking and taking on water fast. The CS4 knife in the back of CS3 customers was the last straw.
Look for Apple to buy them at a bargain price late 2009, get rid of most of the extraneous products, and move it forward again.
RIP Adobe. We knew you well.