Summary
Adobe Inc. (ADBE) filed an 8-K on November 10, 2009, to report a workforce reduction as part of its 2010 operating plan. The company announced its intention to eliminate approximately 680 full-time positions globally. This restructuring is aimed at aligning costs for the upcoming fiscal year. Investors should note that Adobe expects to incur pre-tax restructuring charges ranging from $65.0 to $71.0 million. These charges are primarily composed of employee severance costs ($48.0 to $52.0 million) and facility consolidation costs ($17.0 to $19.0 million). A portion of these charges, between $18.0 to $20.0 million, is anticipated to be recognized in the fourth fiscal quarter of 2009. The company expects to complete most of the restructuring activities by the end of fiscal year 2010, with most of these charges resulting in cash expenditures. Importantly, this specific restructuring plan does not include costs related to the recent acquisition of Omniture, Inc.; those expenses will be accounted for as part of the acquisition's purchase price.
Key Highlights
- 1Adobe announced a workforce reduction of approximately 680 full-time positions worldwide.
- 2The company expects to incur pre-tax restructuring charges between $65.0 million and $71.0 million.
- 3These charges include $17.0 to $19.0 million for facility consolidation and $48.0 to $52.0 million for employee severance.
- 4Approximately $18.0 to $20.0 million of these charges are expected to be recorded in the fourth fiscal quarter of 2009.
- 5The majority of restructuring activities are anticipated to be completed by the end of fiscal year 2010.
- 6Substantially all of the restructuring charges will result in cash expenditures.
- 7This restructuring plan is separate from costs associated with the recent acquisition of Omniture, Inc.