Tuesday, June 22, 2010

RealNetworks Cuts Staff, Reorganizes

Seattle-based RealNetworks announced late Tuesday that it is in a "significant reorganization" of the firm, which will result in the loss of about 85 positions, including 25 percent of its executives. According to RealNetworks (RNWK), the move is part of a strategy to "simplify, restructure, and grow" the firm. As part of the consolidation and reorganization move, the firm said it has consolidated its Technology Products and Solutions and Media Software and Services business units into functional teams. RealNetworks said the move will "reduce the spans and layers of management" at the firm. As part of the cuts, the company is also reducing office space in Seattle, as well as Europe and Asia, and will take a charge of $10M for the quarter ended June 30. The firm said $3M of that charge will go towards its reduction in force, with the remainder for losses on excess office facilities.