Video software maker SeaChange International announced Monday that it will lay off 10 percent of its global workforce, resulting in the loss of about 70 jobs.
Samit (Source: SeaChange)
The Acton, Mass.-based company counts MSOs including Comcast (NASDAQ: CMCSA) and Cox as clients, serving these companies with support for analytics and advertising, as well as on-demand and multiscreen delivery.
SeaChange currently employs 723 workers, most of them based in the U.S., with outsourced employees based in locations including the Philippines.
The cuts, which will be implemented over the next several quarters, will result in an $11 million annual operational savings for the company. The company said that severances related to the layoffs will result in an immediate $1.3 million hit to its bottom line when it reports fiscal 2015 Q4 numbers in April.
For its fiscal third quarter, SeaChange reported revenue of $30 million and a loss of $6.3 million.
Company officials attribute the slowdown in profitability to the maturation of core products.
"SeaChange has delivered on its long-term strategic commitment and ongoing investment to bring a new generation of software products to market and enable a range of innovative IP-based video services for its customers," said SeaChange CEO Jay Samit, in a statement. "With Adrenalin and Nucleus established in the marketplace, we can now orient our industry-leading resources toward capturing the lead in additive applications to help our core customers grow revenues and expanding our customer base into new segments such as OTT video services."
SeaChange revenue drops to $35.6M, but tops Q4 projections
SeaChange blames Q4 revenue shortfall on delays in orders from pay-TV distributors
SeaChange to resell ThinkAnalytics recommendation engine