Streaming media specialist RealNetworks has announced that it is to decimate its workforce, axing 130 jobs in an effort to streamline the company and better compete in an increasingly competitive market.
In a filing with the Securities and Exchange Commission, prepared by chief legal officer Tracy Daw, the company declared its official intention to reduce its workforce by ten percent as it struggles to maintain a grip on a market dominated by competitors include Adobe and Apple.
"Our plan to simplify, restructure and grow is on track," claimed chief executive Bob Kimball in a follow-up statement. "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."
Despite reducing its workforce, the company is continuing to advertise for more people in order to better focus on still profitable market sectors such as Software as a Service (SaaS), cloud services, and social gaming.
The redundancies will be spread across the company's businesses world-wide, and include positions in engineering, sales, marketing and administration departments.
RealNetworks expects to take a $3 million hit in the first quarter as it restructures, but hopes to make savings of around $11 million a year as a result of the move.