RealNetworks cuts 130 jobs, Mr Goodliving rumoured to close

Final step in restructure to save $11 million annually

RealNetworks cuts 130 jobs, Mr Goodliving rumoured to close
It's been a long and tough restructuring for one-time internet bubble RealNetworks.

The music, technology and casual games company has seen revenues on the slide for years, and it's been cutting jobs and relocating offices to cut costs.

Now it's announced what it's labelled "a final step in the restructuring efforts" that will see about 130 positions, or 10 percent of the remaining workforce, eliminated.

Goodbye Goodliving?

Real says these cuts will span most of its locations and include positions in engineering, sales, marketing and administration. Indeed, it's rumoured the company's highly experienced Finnish mobile studio Mr Goodliving, which has suffered from previous layoffs, will be shut down.

As a result of the reduction in workforce, the company will take a restructuring charge of around $3 million in the first quarter of its current financial year, and anticipates $11 million in annualised cost savings.

One step back to go forward

"Our plan to simplify, restructure and grow is on track," said Bob Kimball, RealNetworks' CEO.

"While the process of restructuring is always difficult, we made substantial progress in 2010 in simplifying our organisation and restructuring to reduce costs. With an efficient foundation in place we are now focused intensely on growing RealNetworks.

"Real has deep expertise in delivering cross-platform media and vast experience selling directly to consumers with a massive installed base. This, combined with relationships with the biggest mobile operators and OEMs in the world, puts us in a strong position to deliver the products and services consumers want and need."

The company's game division, which operates under the GameHouse brand, reported sales of $25.8 million for the three months ending September 30, down 13 percent year-on-year.

However, in terms of operating income, it made $2.4 million, substantially up on the $289,000 booked a year ago.

[source: RealNetworks]
Contributing Editor

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.