GameHouse loses executives as part of RealNetworks' reorganisation

Cost of 85 jobs cut and office relocations will be $10m

GameHouse loses executives as part of RealNetworks' reorganisation
The long, slow metamorphosis of RealNetworks continues, with the company reporting a significant reorganisation as well as further layoffs.

Around 85 jobs have been lost this week, mainly from its Seattle hub.

These include around 25 percent of RealNetworks' executive team, as the company further consolidated its technology products and solutions, and media software and services teams.

"This reorganisation marks a significant milestone in our transformation of RealNetworks," said Bob Kimball, president and acting CEO.

"Restructuring RealNetworks into functional groups creates a far more efficient organisation focused on developing great products that can be delivered through any of our distribution partners."

Playing hardball

The axe also fell on its GameHouse mobile and casual gaming division, which was recently relocated into Real's main headquarters office in Seattle and will lose senior managers.

It's still planned that GameHouse will be spun out as a separate company at some point during 2010 however. The division had revenues of $30 million during Q1 2010, and $123 million for FY2009.

As a result of the reorganisation and reduction in office space, Real expects to record restructuring charges of approximately $10 million for the quarter ending June 30, 2010.

Approximately $3 million of this is related to the job cuts while around $7 million will be recorded as a loss on excess office facilities.

[source: RealNetworks]
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A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.