Adobe Systems said Monday it will reduce part of its workforce in light of its acquisition of Macromedia, saying other employees 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 may also hire new talent within Europe, he said. The cuts will be formally announced on Dec. 15 during the company’s fourth quarter fiscal earnings. 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.
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, chief executive officer of Adobe, and Shantanu Narayen, president and CEO, will remain at the helm of Adobe. Stephen Elop, former president and chief executive officer of Macromedia, will become Adobe’s president of worldwide field operations. Murray Demo remains executive vice president and chief financial officer. John Warnock and Charles Geschke remain co-chairmen of the board of directors of the combined company; Macromedia’s chairman, Rob Burgess, joins the Adobe board.
The two former competitors are both longtime Mac developers, and are among the platform’s most-recognized software publishers. Adobe is best known for its Photoshop and Acrobat products, while Macromedia is similarly reknowned for Flash.
“The explosion of digital content, combined with the accelerating proliferation of mobile phones, wireless devices and the growth of broadband are transforming the way the world engages with information,” Chizen said in a statement announcing completion of the purchase. “Adobe and Macromedia are at the center of this trend, and together we will build on our combined heritage to redefine the way people and businesses communicate.”
As part of the initial integration of the two companies’ product lines, Adobe announced three new product bundles that combine Adobe Creative Suite 2 and Adobe video tools with Macromedia Flash Professional 8 and Macromedia Studio 8 software.
The new product configurations are the Adobe Design Bundle that combines Adobe Creative Suite 2 Premium with Flash Professional 8 software; the Adobe Web Bundle that brings together Adobe Creative Suite 2 Premium and Studio 8; and the Adobe Video Bundle that delivers Adobe video solutions coupled with Flash Professional 8. The Adobe Design Bundle and Web Bundle are available for purchase immediately and the Adobe Video Bundle is expected to ship in early 2006.
Adobe said it will begin integrating the two companies operations, networks and customer care organizations this week. Adobe will go from 30 to about 70 products, and employees will undergo internal training, Beneden said. Macromedia’s logo will no longer appear on products, he said.
Updated at 12:49 p.m. ET to include information on Adobe’s new product configurations.
[ Mathew Honan of Macworld contributed to this report. ]