Adobe, hit by the global economic downturn, said it will cut 600 jobs and lowered its revenue expectations for the fourth quarter.
The job cuts will be made worldwide and account for about 8 per cent of Adobe's total workforce, which stood at 7,623 at the end of September.
The economic slowdown led to slower-than-expected sales of Adobe's new Creative Suite 4 software, which includes products like Photoshop and Dreamweaver and went on sale during the fourth quarter in North America and Europe, the company said.
"The global economic crisis significantly impacted our revenue during the fourth quarter," Shantanu Narayen, Adobe's president and CEO, said in a statement.
Adobe said it expects fourth-quarter revenue to be between $912 million and $915 million, down from its earlier forecast of $925 million to $955 million.
Profits will be higher than expected, however, at $0.59 to $0.60 per share before one-time charges, ahead of the consensus analyst estimate of $0.51, according to Thomson Reuters.
The news sent Adobe's stock 7 percent lower in after-hours trading, to $20.95. Adobe is due to report its full results 16 December.
It joins a growing list of technology companies, including SAP, Intel and Sun Microsystems, that have been hurt by the economic downturn.