Adobe issues Pink Slips, Macromedia Logo Disappears

Adobe Systems Inc. will cut 650 to 700 jobs as it folds recently acquired rival Macromedia Inc. into its operations. Adobe had 4,286 employees at the end of the third quarter, while Macromedia had 1,538. The 11 per cent to 12 per cent workforce reduction would reduce overlapping positionsand employees from both companies would be affected.

Adobe Systems will record costs of as much as $US25 million ($33.3 million) to fire workers and close offices after its $US3.4 billion purchase of Macromedia. The expenses include as much as $US20 million in payments to sacked employees and $US5 million in fees to close offices, the company says in a filing it lodged last week with the US Securities and Exchange Commission.

Adobe will begin eliminating positions from the combined workforce. Layoffs will occur in jobs where there is duplication, says Pierre Van Beneden, Adobe’s vice president for Europe, the Middle East and Africa. Other workers in Europe may be offered jobs in Nordic regions or Eastern Europe to bolster product offerings there, he says.

Q.How is Adobe providing for employees who are not staying with the company?

A. Adobe is committed to making the transition for employees as smooth as possible. In the U.S., it is our intent to begin notifying all employees as soon as possible after the closing of the transaction. Detailed information on benefits will be provided directly to employees. Employees outside the U.S. will be advised on next steps by their managers. In order to assist employees with this career transition, Adobe has retained the services of Drake Beam Morin (DBM), a global outplacement provider.

Q. Adobe and Macromedia both have operations in several of the same cities and regions. Will there be facilities closures?

A. We have made key facilities decisions and will consolidate in a number of locations where duplication exists. As we work through the integration process, we will continue to evaluate where consolidating facilities may make sense, based on our hiring plans and the locations of our customers.


Following the Macromedia acquisition, Adobe India will hire additional 300 employees by the end of next year. Adobe India MD and print and classic publishing solutions business unit (PCPBU) senior VP Naresh Gupta informed this while announcing the completion of Macromedia Inc.’s acquisition by Adobe Systems Inc.

As a result of Macromedia acquisition, Adobe has acquired the Bangalore R&D center of Macromedia, which employed 146 engineers. Adobe’s staff strength in India had gone up to 650 from 504. Adobe’s India office is the largest for the company outside US. It accounts for 12% of Adobe’s employee strength and 25% of total engineering strength.

While the India centre will continue to provide support and upgrades for Adobe’s product lines in general, it will develop and own print, multimedia and e-learning tools like PostScript, Type, FrameMaker, PageMaker, Macromedia Captivate (formerly eHelp Robodemo), Authorware, Contribute, JRUN, among others.