Adobe CEO Shantanu Narayen to step down after 18 years as AI disruption reshapes creative software

Adobe's longtime CEO to exit role amid AI disruption, shares tumble

March 12 (Reuters) - Adobe (ADBE.O), opens new tab said on Thursday its chief executive officer Shantanu Narayen will transition from his position once a successor has been appointed, sparking uncertainty around the company's strategy as it grapples with heightened industry competition. Shares of the company fell around 7.5% in extended trading. Narayen's exit from the role comes after he served as the ⁠company's head for 18 years, during which he helped the company's flagship software such as Photoshop, Illustrator, Premiere Pro and InDesign become household products for creatives across the world. Narayen will stay on as chair of the board to support the next CEO, the company said. Adobe is grappling with a changing software landscape, where artificial intelligence is lowering the barrier to entry for design and its dominant ⁠position in the industry is being threatened by newcomers embracing the technology. Worries have also flared with the rise of new automated AI tools and agents that many fear would be able to disrupt traditional ⁠software subscription models and give way to quicker and cheaper ways of creating products. Adobe's shares have fallen around 22% so far this year, reflecting ⁠investor apprehension over the firm's AI strategy and outlook. The company also announced quarterly financial results, forecasting second-quarter revenue of between $6.43 billion to $6.48 ⁠billion, compared with estimates of $6.43 billion, according to data compiled by LSEG. It reported first-quarter revenue of $6.40 billion, beating estimates of $6.28 billion. Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Adobe CEO Narayen Plans Exit as Tech Firms Restructure Around AI - Decrypt

The automation is rapidly reshaping hiring, engineering roles, and tech leadership, observers told Decrypt. Shantanu Narayen, CEO of Adobe, plans to step down after nearly two decades at the helm of the software maker, as the rise of generative AI forces tech companies to rethink leadership, strategy, and workforce size. Adobe announced Thursday that Narayen will remain as board chair while the company begins a search for his successor, marking a leadership transition as the firm expands its push into generative AI tools across its creative and marketing software products. "The next era of creativity is being written right now -- shaped by AI, by new workflows and by entirely new forms of expression," Narayen wrote in a letter to employees. During his tenure, Narayen oversaw Adobe's growth, lifting its revenue from under $1 billion to over $25 billion, and its software and digital experience tools reached billions of users. The changes at Adobe come as generative AI tools begin to challenge parts of its core creative software business, with new platforms offering image, video, and design capabilities through simple prompts, replacing traditional editing workflows. The shift is forcing other tech companies to rethink how products are built, how teams are structured, and how quickly new tools can be deployed. Tech firms are "pivoting their operations around the AI narrative," to integrate it across all functions, focusing on strategy and product development, Dominick John, analyst at Zeus Research, told Decrypt. There is a "rapid realignment of tech talent," where demand has surged for roles in AI while "legacy and routine positions are being pared back," he added. This week, workplace software firm Atlassian confirmed it will cut about 1,600 jobs as it shifts resources toward AI. That followed Jack Dorsey's payments company Block, which runs the Bitcoin-focused Cash App, also cutting over 4,000 staff last week as it reorganizes around AI tools and automation. What's happening "isn't just a Big Tech story," Ryan Yoon, senior analyst at Tiger Research, told Decrypt. "Organizations are choosing to do fewer things with smaller, more focused teams," Yoon said. OP Labs, the developer behind Optimism, also cut staff earlier this week as Ethereum scaling strategies shift and activity moves toward rival networks such as Coinbase's Base. "The uncomfortable truth: if you've automated your own workflow, you've also made the case for eliminating your role," he added. "This is a long time coming, it's a matter of if not when," Berna Misa, deal partner at Broady Ventures, told Decrypt, pointing to trackers for the trend. One such site, jobloss.ai, tracks layoffs where artificial intelligence is cited as a contributing factor, estimating about 76,800 AI-linked job losses globally, including roughly 66,400 in the U.S. The tech sector "has always been the sector that is most disrupted by its own creations," Luis Buenaventura, president at the Blockchain Council of the Philippines, told Decrypt. "This is because it's often also its own first customer." AI coding tools, for instance, are making experienced developers "lethally productive," reducing the need for large teams of junior engineers and quality assurance staff, Buenaventura explained. As a result, companies launching new projects may hire fewer people and focus on senior developers with "real-world experience that AI cannot currently simulate," he said.

Adobe's longtime CEO Shantanu Narayen to exit role amid AI disruption

Adobe's CEO Shantanu Narayen will step down after 18 years, sending shares down over 7% amid concerns about AI disruption. Despite reporting Q1 revenue and profit above estimates, the company faces strong competition and fears that new AI tools could disrupt its subscription model. Narayen will remain as board chair to support the transition. Adobe's longtime CEO Shantanu Narayen will leave his role once a successor is appointed, the design software maker said on Thursday, sending its shares down over 7% in extended ⁠trading ⁠on renewed worries around its strategy as it grapples with AI disruption. Narayen's exit from the role comes after he served as the head of Adobe for 18 years, during which he helped the company's flagship software such as Photoshop, Illustrator, Premiere Pro and InDesign become household products for creatives across the world. Narayen will stay on as chair of the board to support the next CEO, the company said. But the announcement of him leaving the helm puts the company in a precarious ⁠position as it comes at a time when Adobe is doubling down on AI, striking partnerships and exploring acquisitions to extend its industry lead. Separately, Adobe reported quarterly financial results, with double-digit growth ⁠in total revenue and its customer subscription segments, reflecting resilient spending on its product suite. Adobe is grappling with a changing software landscape, where artificial intelligence is lowering the barrier to entry for design and its dominant position in the industry is being threatened by newcomers embracing the technology. "Investors will likely focus on whether incoming leadership maintains a balance between disciplined execution and aggressive AI investment, especially as competition in creative and enterprise AI intensifies," said Emarketer analyst Grace Harmon. Worries have also flared with the rise of new automated AI tools and agents that many fear would be able to disrupt traditional software subscription models and give way to quicker and cheaper ways of creating products. While Adobe has bet heavily on artificial intelligence to bolster ⁠its product suite, "investor skepticism about monetization timing and payoff may have factored into a drop in its share prices," Harmon said. Adobe's shares have fallen around 22% so far this year after declining over 21% in 2025, reflecting investor apprehension over the firm's AI strategy and outlook. The company forecast second-quarter revenue between $6.43 billion and $6.48 billion, compared with estimates of $6.43 billion, according to data compiled by LSEG. It reported first-quarter revenue of $6.40 billion, beating estimates of $6.28 billion. On an adjusted basis, the company earned $6.06 per share, compared with estimates of $5.87 per share. Creative and Marketing Professionals subscription revenue came in at $4.39 billion, topping expectations of $4.32 billion.

Adobe's longtime CEO to exit role amid AI disruption, shares fall

March 12 (Reuters) - Adobe's longtime CEO Shantanu Narayen will leave his role once a successor is appointed, the creative tooling company said on Thursday, sending its shares down 6.5% in extended trading on renewed worries around its strategy as it grapples with AI disruption. Narayen's exit from the role comes after he served as the company's head for 18 years, during which he helped the company's flagship software such as Photoshop, Illustrator, Premiere Pro and InDesign become household products for creatives across the world. Narayen will stay on as chair of the board to support the next CEO, the company said. Adobe is grappling with a changing software landscape, where artificial intelligence is lowering the barrier to entry for design and its dominant position in the industry is being threatened by newcomers embracing the technology. "Investors will likely focus on whether incoming leadership maintains a balance between disciplined execution and aggressive AI investment, especially as competition in creative and enterprise AI intensifies," said Emarketer analyst Grace Harmon. Worries have also flared with the rise of new automated AI tools and agents that many fear would be able to disrupt traditional software subscription models and give way to quicker and cheaper ways of creating products. Adobe's shares have fallen around 22% so far this year after declining over 21% in 2025, reflecting investor apprehension over the firm's AI strategy and outlook. The company also announced quarterly financial results, forecasting second-quarter revenue of between $6.43 billion to $6.48 billion, compared with estimates of $6.43 billion, according to data compiled by LSEG. It reported first-quarter revenue of $6.40 billion, beating estimates of $6.28 billion. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)