Machinima co-founder Allen DeBevoise will relinquish the CEO role at the struggling Internet video producer as it searches for a new leader to right the ship.

A Machinima rep confirmed that the company has begun a formal search for a new CEO, spinning the move as “a positive step in Machinima taking business to the next level.”

AllThingsD broke the story, quoting DeBevoise as saying the company at this stage needs “professional management.” He’ll stay on as chairman after a new CEO is hired.

The news comes after Machinima last month announced that it was laying off 22 of its 206 employees, or approximately 11% of its staff, coming on the heels of cuts last December.

Machinima — one of the biggest YouTube multichannel network producers — targets young male auds with original content including scripted series, animated shows and gameplay videos.

The company said it is seeking a new round of funding. In May 2012, Machinima raised $35 million in funding led by Google with returning investors Redpoint Ventures and MK Capital.

Meanwhile, Machinima confirmed that president and co-founder Philip DeBevoise (Allen’s brother) and EVP of network programming Aaron DeBevoise (Allen’s nephew) will exit by the end of the year to pursue new ventures, as first reported by TubeFilter.

Machinima recently hired Stephen Semprevivo as president and general manager. He has worked with Machinima as a consultant for roughly seven months and is now with the company full-time to lead overall operations within the company.