Adobe Shuts Down Operations for a Week

Adobe shuts down for the week, blames the recession

source: dailytech

Adobe announced it has shut down its entire North American operations for one business week to help cut costs as the global economy continues to hurt the American tech company.

The week-long shutdown started on June 29, with business expected to return to normal starting Monday, July 6, though the company has already carried out several cash-cutting moves in the past. For example, spending on travel and bonuses have both been slashed according to CFO Mark Garrett, with further cost-cutting in the works.

Adobe officials didn't announce how many of its employees will be affected by the shutdown this week – also, no one disclosed how much money the company expects to save from the week off.

Last December, the company announced it would lay off around 600 employees; however, it has re-hired 260 employees outside of the United States.

Adobe has already done this once before, and has one more scheduled week of shut down scheduled before the end of the year. Furthermore, the company traditionally shuts down for a week between Christmas and New Year's Day, which will also take place like normal.

Adobe is still profitable, but it has seen sales dip due to the economy.

"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."

Adobe has Flash, Acrobat, Illustrator, Dreamweaver, Photoshop, and several other popular pieces of software, but must find ways to attract new consumers at a time when many developers and consumers are cutting back on spending.