Why Adobe is abandoning 1st-tier digital design as it tries to regain relevance
The online design company Adobe has laid off more than 1,000 designers as it seeks to revive its digital strategy as it attempts to regain some relevancy in a global marketplace where many designers and brands are now losing ground.
In a memo to employees Friday, Adobe Chief Financial Officer Craig McCorkle said the company is “determined to take our digital leadership in a new direction that will bring greater agility and innovation to the design and development of digital products.”
The memo was the latest sign that the company’s digital strategy has been seriously challenged by competitors who are pushing its products more aggressively than ever.
The digital transition has been marked by the emergence of competitors like Amazon, Google, and Microsoft, as well as by the rise of self-publishing and social media.
The company’s shift away from its traditional first-tier approach to building digital products for the home and office, McCorklent said, will require it to create a new business model that is not limited to digital.
In addition, the company must make some fundamental adjustments to its core product line and product offerings to make sure they meet the changing needs of consumers and businesses around the world, he said.
For instance, Adobe said it has already begun work on the first-party products for Windows 8, the next version of Windows that is expected to be released later this year.
The company is also exploring the possibility of selling its existing digital products as a service (DPS) product to new customers.
Adobe will also continue to sell Adobe Creative Cloud for businesses that require more of the functionality of the company system but may also have some additional revenue streams from that.
As a result, Adobe is also planning to offer Adobe Creative Suite to existing customers for the first time in the coming years.
Adobe has also made moves to bring Adobe Creative Services (ACS) to new products in the past year or two.
The product, which is similar to Adobe’s Photoshop software, offers powerful visual design tools for businesses to develop and customize.
However, Adobe will likely not be selling Adobe Creative Tools for existing customers as it plans to sell the products as an add-on service to existing clients.
The shift in focus to the digital space is the latest in a string of changes for the world’s largest digital company.
Last month, Adobe announced that it had bought an investment firm called Adobe Digital Services for $250 million.
In March, Adobe launched an online marketplace that allows businesses to sell digital products directly to consumers.
This month, the agency also announced it was laying off nearly 2,000 employees, which will result in the closure of several design offices.
In October, Adobe also announced a new initiative to streamline its design process.
The companies digital strategy will be tested over the next several months in what Adobe is calling its “biggest test yet,” a digital redesign of its home and professional product lines that will begin next month.
The goal is to reduce the cost of design and make the software simpler to use.
Adobe said the goal of this test is to demonstrate that the products can deliver better design, faster response, and less time spent on complex design.
The next phase of the redesign will likely include a new version of Adobe Creative Toolkit (ACT), which Adobe said will focus on more powerful design tools that are better suited to the needs of business users.