Adobe Shuts Up Shop For Cost-Saving Week
Adobe Systems has shuttered its North American operations for the week of 29 June in a cost cutting manoeuvre, according to published reports.
The graphic design software giant, Adobe has shuttered its North American operations for the week of 29 June in a cost cutting manoeuvre, according to published reports.
The newspaper local to Adobe headquarters, The San Jose Mercury News has reported that Adobe shut down to cut costs as sales have declined in the recession.
In addition, the Mercury News reported that Adobe earlier in the year announced plans to shut down for a week in each of the second third and fourth quarters or 2009.
The company already closed for a week in April of this year, and is slated to shut down for another week in the fourth quarter of the year. The Mercury News reported that Adobe has asked its employees to use their paid vacation time during the closures.
Adobe has seen a decline is in revenues over the last two quarters. According to the company’s most recent earnings results:
“In the second quarter of fiscal 2009, Adobe achieved revenue of $704.7 million, compared to $886.9 million reported for the second quarter of fiscal 2008 and $786.4 million reported in the first quarter of fiscal 2009.”
A Bloomberg report also said:
“The company has frozen salaries, trimmed bonuses and variable compensation plans, and curbed travel expenses, chief executive officer Mark Garrett said in an April interview. In December, the company fired about 8 percent of the workforce to help rein in costs during the economic slump.”
Adobe did not comment o how many workers would be impacted by the shutdowns. The company also did not say how much money it expects to save through the closures.
