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By | Paul Kunert 9th November 2011 11:27

Adobe axes 750 jobs to focus on HTML5, cloud

No more love for Flash on mobiles

Adobe has confirmed it is slashing 750 jobs across its enterprise licensing biz and focusing on HTML5 work as part of a restructure to pump up its digital media and marketing software.

The proposal to cut around seven per cent of its workforce came as the maker of reassuringly expensive graphic design software reaffirmed expectations for a record fourth quarter with revenues - estimated to be between $1.07bn and $1.12bn.

"In order to better align resources around Digital Media and Digital Marketing, Adobe is restructuring its business. This will result in the elimination of approximately 750-full time positions primarily in North America and Europe," it said.

This will result in pre-tax charges of $87m to $94m including costs relating to employee severance and the consolidation of leased real estate.

"In order to drive increased digital marketing bookings, which are recognised as recurring revenue, the company will reduce its investments, and expected licence revenues, in certain enterprise solution product lines," the US firm added.

Basically, Adobe is going to pour more cash into HTML5 through the Dreamweaver, Edge and PhoneGap tools that it took on board through the acquisition of Nitobi. Flash will instead home in on PC gaming rather than mobile platforms: ZDNet reports that Adobe is halting development of Flash Player for browsers on handhelds.

The firm will also expand cloud-based software and endeavour to extend its customer base through tablet touch apps.

Mark Garrett, Adobe president, gushed: "By focusing resources on two large initiatives and shifting our business model, we can drive faster and more predictable growth in FY2013 and beyond." ®

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