Loudeye Corp., a leading provider of Webcasting and digital media services, reduced its staff and taken other cost cutting measures it expects will generate more than $10.2 million in annual cash expense savings.
Approximately 37% of Loudeye's current workforce will be affected by the reduction-in-force. Upon completion of the restructuring, the company will retain approximately 130 full-time permanent employees at locations in Seattle, New York and Los Angeles. Among those affected by these measures is the chief financial officer whose duties will be assumed on an interim basis by the company's vice president, finance and controller, Jerry Goade.
In addition to the headcount reductions and other cost containment actions, executives at the company have accepted a ten-percent salary reduction.
The company expects to record a charge of approximately $1.7 million in the second quarter related to these actions.
"We are determined to reach operating cash flow breakeven by the end of the year while maintaining sufficient capital reserves," said John T. Baker, Loudeye chairman and chief executive officer. "It is clear we must both grow revenues and reduce costs to achieve these targets. Today's announcement demonstrates our steadfast commitment to take the measures required to reach our goals."
"Streaming media is emerging as a mainstream communications and marketing tool across a variety of industries," continued Baker. "In concert with our newly reduced cost structure, the growth opportunities in our market and the expected impact of ongoing product development and marketing initiatives should position us well for the second half of the year."