Software developer Adobe Systems is cutting 750 jobs, while reports say it is halting development of its Flash Player plug-in for mobile devices.
The firm said the job cuts were being made in Europe and North America and represented more than 7% of the company's workforce.
The firm said it was axing the posts to help it put more focus on digital media and digital marketing.
It had no comment about the Flash Player report.
Flash is used to run movies, games and other applications. The plug-in works on Android devices and Blackberry's Playbook tablet, but Apple has barred it from iPhones and iPads.
Apple's late former chief executive, Steve Jobs, attacked the code for being unreliable, a security threat and a drain on battery life.
Adobe responded by saying the plug-in would "continue to be the dominant tool" for media on the internet.
However, reviewers also criticised its performance on other devices and Microsoft recently announced it would not support the product on the tablet interface of its upcoming Windows 8 browser.
Leak reportedTech website ZDNet said it had seen an email briefing sent by Adobe to its partners.
"We will no longer adapt Flash Player for mobile devices to new browser, OS version of device configurations," it read.
"Some of our source code licensees may opt to continue working on and releasing their own implementations. We will continue to support the current Android and Playbook configurations with critical bug fixes and security updates."
The report said the firm would now focus on the alternative HTML5 technology and its own AIR product.
A spokeswoman for Adobe was unable to confirm the report.
Adobe is expected to give more details later in the day at its annual analysts' conference.
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