Loudeye Technologies today announced measures to reduce its permanent workforce by approximately 19 percent from 265 to 215. The company said that the move is an effort to further improve operating efficiencies by consolidating facilities in the wake of the company’s acquisition of Seattle-based Activate on September 25.
According to a Loudeye spokesperson, the action is a result of Loudeye’s ongoing integration of its Activate acquisition. “As this integration occurs, we are seeing opportunities to optimize operating efficiency through facilities consolidation and trimming staffing redundancies. The actions will result in cost savings of approximately $7-8 million on an annualized basis.”
As recently announced, Loudeye plans to consolidate all Seattle-based operations into the headquarters of its newly acquired enterprise webcasting subsidiary, Activate. The move will generate an estimated $3-4 million of annualized cost savings upon completion later this year.
In a printed statement issued this morning Loudeye Chairman and Chief Executive John T. Baker said “We are realizing increased staffing efficiencies and cost savings through consolidating technology, facilities and equipment from our recent acquisitions. Today’s actions are part of an overall plan to maximize our capital resources and reach our goal of positive cash flow by year-end 2002.”
Loudeye expects to record a charge of approximately $1 million in the fourth quarter related to these changes.