Acton's SeaChange cutting 10% of workforce
Two months after it reported a third-quarter loss and revenue that fell short of expectations, video software manufacturer SeaChange International of Acton said it’s cutting about 10 percent of its global workforce in an effort to save $11 million in its current fiscal year.
In a statement, SeaChange said the job cuts were implemented immediately within its U.S. operations and will be implemented at its other sites outside the U.S. over the next several quarters.
SeaChange, which, as of last April, had a global workforce of 746, with 246 at its Acton headquarters, said the cost reductions will come from headcount reductions and a decrease in the use of outsourced contract labor. The company said the cuts will result in about $1.3 million in restructuring and severance charges during its fourth fiscal quarter, which ended Jan. 31. There may be more charges in future quarters after the actions outside the U.S. take effect, the company said.
In its third-quarter report, SeaChange said it lost $6.3 million on revenue of $30 million, which fell short of the expectations of analysts surveyed by Zacks Investment Research. Just before the end of that quarter, it hired industry veteran Jay Samit as its new CEO, replacing Raghu Rau, who was CEO since 2011.
In December, the company announced it would acquire Timeline Labs, of Santa Monica, Calif., which helps broadcast news organizations manage and analyze social media content. The deal, valued at between $22 million and $25 million, was expected to close this week.
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