Avid Technology, the powerhouse behind the editing software used to create most Hollywood films, TV shows and musicvids, said Tuesday it would pinkslip 140 staffers and close several offices in an effort to save $11 million per year.
“Given the current economic environment, we recognize the need to carefully manage our expenses,” said Avid CEO-prexy David Krall. “We’re taking these difficult but important steps to further improve our cost structure and profitability, while preserving our investments in the future. Our customers should see no adverse impact on either our product offerings or our level of support as a result of these measures.”
Cuts hit Boston HQ
The reductions, which account for roughly 8% of its workforce, will force the Tewksbury, Mass.-based company to take a third-quarter restructuring charge of $8 million. A majority of those affected by the cutbacks and consolidations will come from Avid headquarters near Boston.
As a result, operating expenses, excluding amortization and restructuring, are expected to decline to approximately $56 million for the third quarter and approximately $55 million for the fourth quarter.
Last month, Avid reported a second-quarter loss due to declines in European video business and worldwide audio business of $14.8 million. A year ago it had a net loss of $18 million.