• United States
by Jeremy Kirk

Layoffs pending after Adobe, Macromedia merger

Dec 05, 20052 mins
Adobe SystemsData CenterStaff Management

Adobe will reduce part of its workforce in light of its acquisition of Macromedia, saying Monday that employees who don’t lose their jobs may be offered relocation packages.

Layoffs will occur in jobs where there is duplication, said Pierre Van Beneden, vice president for Europe, the Middle East and Africa for Adobe. Other workers in Europe, for example, some in the U.K., may be offered jobs in Nordic regions or Eastern Europe to bolster product offerings there, he said.

Adobe might also hire new workers within Europe, he said. The cuts will be formally announced on Dec. 15 when the company releases its fourth-quarter financial report. As of March 2005, Macromedia had 1,445 employees worldwide, with 1,151 of those workers in the U.S.

“When you speak about reductions in force, I want to say that we share the pain between the two companies, Adobe and Macromedia,” Beneden said in an interview.

Adobe completed its $3.4 billion acquisition of Macromedia on Saturday, a deal first announced in April. Macromedia investors will receive 1.38 shares of Adobe common stock for each of their shares, the company said.

Bruce Chizen, CEO of Adobe, and Shantanu Narayen, president and chief operating officer, will remain at the helm of Adobe. Stephen Elop, former president and CEO, will become Adobe’s president of worldwide field operations.

With the acquisition, Adobe adds to its portfolio Macromedia’s popular Flash products used to view animation and video. Adobe’s own portfolio includes the widely used PDF and Acrobat reader.

Adobe, which is based in San Jose, said it will begin integrating the two companies’ operations, networks and customer-care organizations this week. Macromedia was based in San Francisco.

Adobe will go from 30 products to about 70 products, and employees will undergo internal training, Beneden said. Macromedia’s logo will no longer appear on products, he said.