Adobe to Trim 8% of Workforce

SAN JOSE, Calif. -- Adobe Systems (ADBE Quote) released better-than-expected preliminary earnings for the fourth quarter, but said it will cut 600 jobs, or 8% of its work force, because of slower revenue growth.

The software company said late Wednesday it expects earnings of 45 cents to 46 cents a share, compared with 49 cents a share in the year-earlier period.

Excluding certain items, Adobe said it expects to earn 59 cents to 60 cents a share. Analysts, who typically exclude one-time charges or gains, projected 51 cents, according to Thomson Reuters.

Adobe said revenue should come in between $912 million and $915 million, up from $911 million a year earlier, but below the average Wall Street estimate of $930 million.

"The global economic crisis significantly impacted our revenue during the fourth quarter," Adobe CEO Shantanu Narayen said in a statement.

The company said it will cut 600 jobs across all locations and business units. The layoffs will cost between $44 million and $50 million in charges, Adobe said.

The stock rose 54 cents, or 2.5%, to $22.54 in the regular session, but fell to $20.98 in after-hours trading following the release of the outlook.