RealNetworks joins layoff list
Posted
Dec 05 2008, 11:33 AM
by
Kim Peterson
Rating:
Shares of RealNetworks fell nearly 7% Friday after it joined the growing number of companies laying off workers this month. Real is cutting 130 jobs, or about 7.5% of its total workforce.
The company cited the economy, of course, as its motivator, but said it's also consolidating operations and getting more efficient. Here's the CEO memo, courtesy of Digital Daily.
One analyst said the cuts "can only be helpful to the share price outlook," because they'll help cash flow stay positive in a spiraling economy. After topping $7 this summer, Real's share price has plunged to $3.44 and investors have been largely apathetic about the company and its prospects.
Real hasn't had the best year. It's major initiative for 2008 was pulled down after movie studios sued. That product, called RealDVD, allowed computers to make copies of DVDs.
Related reading:
RealNetworks' complicated DVD ripper
Hollywood sues RealNetworks over DVD copier
RealNetworks has cash but no one cares
