Despite a forecast that quarterly earnings will top earlier estimates, Adobe Systems Inc. announced yesterday that it's cutting 250 jobs and phasing out its European headquarters in a restructuring move intended to focus the company more on e-commerce.
Adobe said it expects earnings for the second quarter, which ends tomorrow, 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 $246 million, or in the upper range of analysts' predictions, Adobe said in a statement that also announced the restructuring that will lead to layoffs of about 9% of its global workforce.
The restructuring, for which Adobe expects to take a $15 million 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 www.adobe.com.
Adobe, based in San Jose, Calif., makes graphic design, publishing and imaging software for print and Web production.