Adobe, the world’s biggest software company, announced this week it is closing down its graphic design operations in the U.S. and Canada.
The move comes amid a global slowdown in graphic design and is part of Adobe’s plan to reduce its footprint, as it tries to cut costs and maintain the quality of its products.
The company is also announcing it is creating a new digital division focused on “creative content, and more broadly digital content, to drive revenue and enhance our business.”
The announcement came on the heels of Adobe being criticized by a group of prominent graphic design firms over its pay and working conditions.
Adobe said its board agreed to pay $12 million to settle allegations of unfair labor practices.
The companies’ dispute was settled in May after the companies agreed to a settlement.
The graphic design business in the United States is expected to lose about 50,000 jobs, according to Adobe, which is currently trying to grow its international sales.
It said it is still working to find ways to help the graphic design sector survive, but it said it will not be able to survive on a standalone basis.
The new digital company will focus on content marketing, a product that helps Adobe earn money from online advertising, and its digital design services.
It will also offer content development, the business of design for creative professionals, to help companies get more work done.
The new division will be focused on developing and maintaining the digital product portfolio, according a company statement.
The decision comes as Adobe continues to grapple with a slowdown in its business.
It has been working to get more money from advertising to help offset losses as its advertising business has declined.
Adobe had revenues of $10.9 billion for the second quarter.
Its loss in the first quarter was $4.1 billion.
The global slowdown has been attributed to the economic downturn in China and the U.
“We are seeing the impact of global economic uncertainty,” said Steve Pifer, the chief executive officer of Adobe.
“We have been working closely with our global partners and communities to help build resilience for our business, which includes the ability to innovate, deliver great products, and keep our users engaged.”
The Adobe decision comes after it closed the first of four U.K.-based facilities in the past two years.
The other two were in France.