Adobe prepares for testing time ahead

Adobe Systems has announced major restructuring and up to 300 job losses in an attempt to plan for long-term growth.

News of the graphics software company's reorganisation comes at the same time as a third quarter profits warning. The company admitted it is likely to report a loss, or just break even, for the period. For the corresponding three months last year, Adobe reported net profits of $53.4m.

John Warnock, Adobe chairman and CEO, said: "These expected results are unacceptable."

The company partly blamed the "adverse economic conditions in Japan" for its poor prospects.

As a result of reducing its global workforce and streamlining its executive management team, Adobe said it hopes to cut costs by up to 10 per cent, saving $50 to $60m per year.

The company has suffered in recent quarters as the Macintosh market - where its software traditionally sells well - has shrunk. However, industry watchers have noted that refocusing on the PC market and the modest resurgence of the Mac platform in recent months means the future may not be too bleak.

In addition to the board reshuffle, Warnock said he will step down from board positions he holds outside of the company.