Despite Adobe Systems' reviving financial fortunes, it plans to axe nine per cent of its workforce worldwide or 250 staff, 100 of which will come from its European headquarters in Edinburgh, Scotland.
This means that the 30 remaining staff in the Edinburgh office will now only handle customer support. European sales functions will be based in Paris and marketing and administration will be folded back into the desktop publishing software supplier's headquarters in San Jose, California.
The move follows Adobe's decision last September to sack 350 - mainly US - workers when it was struggling in the face of slow sales of Apple Macintosh computers - a key platform for the vendor.
But since then, the company's financial fortunes have rebounded. On Wednesday, it predicted that profits for the quarter, which ended 28 May, would be higher than analysts' projections of approximately $42 million or $0.64 per share, while revenues were expected to grow to about $246 million. Adobe will announce its figures on 17 June.
In the previous quarter, the company also announced profits of $38.3 million or $0.60 per share for the period ended 27 February compared with profits of $26.7 million or $0.38 per share in the year ago period. Analysts had predicted a profit of $0.52 per share.
And Wall Street investors have acknowledged Adobe's improved fortunes by sending the share price up to more than $75 at the close of trading on Wednesday, up $2.56 on the day, from just over $23 last September.
But according to Graham Freeman, Adobe's senior vice president for worldwide sales and support, the firm plans to use the $30 million per year it hopes to save on staff costs to launch itself into the ebusiness space and market a revamped ecommerce Web site.
Freeman said that the supplier's adobe.com Web site currently acts mainly as a source of information, but still attracts approximately nine million unique visitors each month.
"We are going to turn it into an ecommerce type site," he explained. Details of the company's new ebusiness model will be released over the next six months, he added.
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