Adobe bucks layoff trend, pledges no company-wide job cuts

Amid industry cutbacks, Adobe sought to reverse the tide of layoffs by opening a new office tower in its home city and making a promise of no companywide job cuts in 2023.

The new sprawling office, known as Founders Tower, is an 18-story, 1.25 million-square-foot shimmering glass addition to San Jose, California.

According to the company, the fourth tower has a capacity for 3,000 employee workstations. Despite opening a new office with amenities, the company still has hybrid and flexible work arrangements.

“We’re actually committed to continuing to grow here,” Adobe chief people officer Gloria Chen said. “We are committed to not having companywide layoffs," Chen added.

Adobe is standing as an exception among tech companies that are slashing jobs and holding back their real estate footprint. 

So far, Salesforce, Meta Platforms, and Microsoft have consolidated or cut real estate leases. Media reports suggested that Amazon.com stalled construction on its second US headquarters in Arlington, Virginia.

Adobe, however, cut some jobs concentrated in sales late last year. According to Chen, the company will hire judiciously and reduce expenses. 

The shares gained less than 1 per cent to US$346.29 at 11.38 am in New York. The stock plunged 41 per cent in 2022 and has increased 3 per cent this year, lagging far behind the 12 per cent jump in the S&P 500 Information Technology Index.