Adobe Hit By Recession: Freezes Bonuses, Increments & Pay This Year

adobe2 The Recession monster is hungry and it will not be checking out in the near future. The latest target being the Graphic Designing Giant Adobe Inc. After the slow down in the global economy it was expected that Adobe’s sales would be hit as well. Chief Financial Officer , Mark Garrett has these words to say on the current financial crisis;

Clearly we aren’t going to have salary increases. The bonus plans and variable compensations plans will pay out less. We have set ourselves up for what we think we need to do – from costs perspective – for the rest of the year.

Adobe has already cut about 8% of its work force. Besides it has also reduced the use of contractors in order to decrease costs. Mr. Garrett also says that the demand for US is still stable while Europe and Asia is declining.

In The US things have stabilized but certainly not improved said the CFO.

Total Revenue accounted for almost 60% last year.I am a little cautious about Europe and Asia because these things seem to spread from here.

Adobe’s US sales hit bottom in February this year and in the first two weeks of March. The company which gets weeks reports from its global distribution channels hasn’t seen any rebound yet.

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