RealNetworks reorganizes, eliminates 85 jobs

Digital entertainment services firm RealNetworks announced plans to reorganize its business and operational structure, eliminating 85 jobs including about one quarter of its executive ranks. Real will consolidate its Technology Products and Solutions and Media Software and Services business units, creating teams focusing on product development, sales and marketing, and service delivery--in addition, the firm will reduce office space in Europe, Asia and its Seattle headquarters. According to RealNetworks, the reorg represents the latest step in its ongoing efforts to simplify, restructure and grow; as a result of the changes, the company expects to record restructuring charges of approximately $10 million for the quarter ending June 30, with $3 million related to workforce reductions the remaining $7 million posted as a loss on excess office facilities.

RealNetworks reported Q1 2010 revenues of $128.6 million, down 9 percent from $140.8 million in the year-ago quarter. In April, digital music service Rhapsody parted ways with RealNetworks and partner Viacom; Real also plans to spin off its games business as it looks to emphasize its carrier-focused software as a service business as well as its RealPlayer consumer efforts.

For more on the RealNetworks reorganization:
- read this release

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