Vignette cuts 200 more jobs and Adobe to close for a week

Vignette, a supplier of e-business applications, has laid off 200 more employees, or 10% of its workforce; and publishing...

Vignette, a supplier of e-business applications, has laid off 200 more employees, or 10% of its workforce; and publishing software developer Adobe Systems said it will shut down during the first week in July.

Vignette's announcement came less than a week after the Texas-based company reported a first quarter operating loss, excluding special charges, of $8.1m (£5.7m), or one cent per share on revenue of $90.1m, compared with a $5.3m loss on revenue of $55.2m for the first quarter a year ago. The company also laid off 450 workers in January.

A spokesman said the layoffs, which were made across the board and in its offices throughout the world, were made as the company pursues long-term growth and profitability.

And in a step similar to those taken recently by Sun Microsystems and Hewlett-Packard, San Jose-based Adobe said it will shut down operations during the first week of July. The company has ordered its approximately 2,000 employees in North America to take that time off. Adobe has 2,800 employees worldwide, according to a spokeswoman.

Spokeswoman Cheryl Edwards said the move is expected to save the company $400m. Edwards said the shutdown wasn't made to avoid layoffs. Unlike other high-tech companies, Adobe hasn't had to cut jobs due to the downturn in the economy.

Edwards added that employees would have to use part of their annual leave of 24 days during the week including 4 July.

"July 4 is a holiday [in the United States] and July 2 is a Canadian [holiday]," Edwards said. "And many people take [that week] off anyway."

Edwards claimed that despite the one-week shutdown, company officials have reaffirmed their previously stated targets of 15% revenue growth and a 31% operating profit margin for the current quarter, which ends next month.

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