Hundreds of workers are facing unemployment after multinational computer software company Adobe decided to close its business in China, Caixin reported Wednesday.
In a surprise move, the company said it will keep only a sales office in the mainland and relocate the business to India.
Most of the company’s 400 employees are expected to lose their jobs. The decision was announced by management from Adobe’s US headquarters during a staff meeting in Beijing Wednesday.
Employees had received an e-mail from Adobe’s China head, Ning-Ju Nan, at 5 p.m. on Tuesday, telling them to gather in the office at 9 a.m. Wednesday.
The dismissals will begin in October. The sales department will be maintained and another 30 employees will be relocated to either its US headquarters or India branch, the report said.
The closure is largely due to the poor financial performance of the China business this year, the report said.
Adobe China saw its net profit slip to US$44.7 million in the third quarter to Aug. 29, down 46 percent from US$83 million in the same period last year.
Earlier, it suspended its annual recruitment of fresh graduates.
Some employees said the company offered five months’ salary plus a certain proportion of their income based on length of service as compensation, the report said.
– Contact us at [email protected]