Streaming media software developer RealNetworks Inc. is cutting 140 employees - 15 per cent of its workforce - and implementing "significant reductions" in its discretionary spending, the company said Thursday.
The cuts come one week after the company posted disappointing second quarter results and announced its chief financial officer's resignation. RealNetworks generated $47.9 million (around £34 milion) in net revenue during the quarter ended June 30, down sharply from its $62.7 million (around £45 million) revenue in the year-ago quarter.
The staff reductions will affect all departments and RealNetworks offices worldwide, spokeswoman Lisa Amore said. The cuts will not alter product development or launch plans, and RealNetworks's MusicNet subscription service is still on track to launch within the next two months, she said.
The company is still determining how its discretionary spending cutbacks will be implemented, but budgets that may be affected include those for travel, entertainment, contract labor, and some marketing activities, Amore said.