Adobe restructures business to focus on digital marketing and media

Adobe is restructuring its business to focus on providing services for digital media and digital marketing, following “explosive growth” in the two categories.

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The company says it will now “aggressively invest” in the two sectors as it looks to become the leader in providing marketing solutions to manage and measure campaigns across multiple devices.

Around 750 jobs in North America and Europe will be cut as part of the realignment, which represents more than 7% of the company’s workforce.

Adobe says it is looking to become a “mission-critical solution provider and partner” to marketers, by driving multi-channel campaign management and helping to ensure digital marketing campaigns are relevant and targeted.

The digital media growth strategy will focus around monetising content creation and publishing using Adobe’s Creative Suite product franchise.

Mark Garrett, Adobe’s executive vice president and CFO, says: “We believe that by focusing resources on two large initiatives and shifting our business model, we can drive faster and more predictable growth in [2013] and beyond.”

Adobe will halt further developments on its mobile plug-in Flash to focus on HTML5, which enables smartphone browsers to perform the same functions – such as video ads and games – without the need for a separate Adobe download. The company says it will refocus its Flash resources on delivering the “most advanced PC web experiences”, although it is unclear how long Flash will be used on desktop.

Garrett says Adobe expects to report “record revenue” on 15 December when it reports its fourth quarter results.

Click here read a Q&A with Ann Lewnes, senior VP of marketing at Adobe

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