RealNetworks Reorganizes…Again, Including the Standard Layoffs and Rejiggering
This is just hitting the wires: Yet another restructuring of RealNetworks, complete with layoffs, office closures and a new organizational look.
The beleaguered Internet media software company, based in Seattle, is cutting 85 jobs, including a good chunk of its exec team, along with dumping some global offices. This means about $10 million in restructuring charges, said RealNetworks (RNWK) in a statement.
RealNetworks has been on a rocky road of late, including the departure of founder and longtime CEO Rob Glaser in January.
Here’s the official press release with all the reorg deets:
RealNetworks Reorganizes Business; Focuses on Growth Initiatives
SEATTLE–June 22, 2010–RealNetworks, Inc. (Nasdaq: RNWK) announced today a significant reorganization of its business and operational structure. The reorganization is a key milestone in Real’s execution of its previously announced strategy to simplify, restructure and grow.
Real has consolidated its Technology Products and Solutions and Media Software and Services business units and organized them into functional teams that represent product development, sales and marketing, and service delivery over a carrier-grade delivery platform.
“This reorganization marks a significant milestone in our transformation of RealNetworks,” said Bob Kimball, president and acting CEO of Real. “Restructuring RealNetworks into functional groups creates a far more efficient organization focused on developing great products that can be delivered through any of our distribution partners.”
As part of this reorganization, the company eliminated about 85 positions, including about 25% of its executive ranks. The new organizational structure is designed to reduce the spans and layers of management to create greater efficiency, teamwork and customer focus.
Real also reduced its office space in Europe, Asia and its Seattle headquarters. As a result of the reorganization and reduction in office space, Real expects to record restructuring charges of approximately $10 million for the quarter ending June 30, 2010. Of these charges, approximately $3 million is related to the reduction in force and approximately $7 million will be recorded as a loss on excess office facilities.