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Adobe to shut China R&D unit, lay off 300, amid poor quarterly results
Computer software maker Adobe Systems Inc will shut its Chinese R&D arm, it said Wednesday.
The California-based company will maintain its China sales offices in Shanghai, Beijing, Guangzhou, Shenzhen, Hong Kong and Taiwan, Adobe said in a statement on Wednesday, but R&D operations will cease by the end of December.
Layoffs have already begun and will affect around 300 people, a person familiar with the matter told Reuters.
"Adobe's presence in China will be focused on market development activities moving forward, and it will be dissolving and closing its R&D branch there," the company said. "Adobe will maintain its sales presence in Shanghai, Beijing, Guangzhou, Shenzhen, Hong Kong and Taiwan."
On September 17, Adobe reported its worst quarterly revenue for Asia in the last five years. For the three months ended August 29, sales in Asia fell 25 percent to $148.2 million.
Adobe's overall net profit dropped 46 percent year-on-year to $44.7 million in the period.
Media reports Wednesday said that employees of Adobe will get compensation depending on how long they have worked at the company.
The company has been downsizing its business in the region in the past few years.
In 2012, the company closed its unit in Taiwan and said that its business in Taiwan would be moved to its Hong Kong branch.
Adobe, founded in 1982, makes popular software such as Photoshop and Dreamweaver.
dacare This entry was posted on September 25th, 2014 at 05:22:22 pm by dacare and is filed under News of China.