BLAKE O'NEAL HERE, IT'S NOT MY WEEK, BUT I FOUND AN INTERESTING ONE KNOWING THAT THE MAJORITY OF THE CLASS IS ELECTRONIC MEDIA AND SHOULD BE FAMILIAR WITH THE SOFTWARE.
Avid plans to cut 410 jobs, sell 3-D unit
Avid Technology Inc. of Tewksbury, the leading maker of professional audio and video editing software, is laying off 410 full-time employees - 15 percent of its workforce - dismissing another 90 contract workers, and selling off its Softimage 3-D game animation software business in a major restructuring.
"We took a hard look across our entire business," said Avid chief executive Gary Greenfield, who was hired in December to overhaul the company in the face of growing competition.
Avid also said yesterday that third-quarter revenue fell 4 percent to $217.1 million, while the net loss ballooned to $66.4 million, or $1.80 per share, compared to a loss of $5.9 million or 14 cents per share in the same period in 2007. Most of the increase was due to a $51 million write-down of the value of Pinnacle Systems, a maker of home video editing software that Avid acquired for $462 million in 2005.
Greenfield said there is no clear evidence the economic crisis has begun to affect Avid. He said Avid's most vital customers, movie and TV production companies, are not yet cutting back production schedules, but added that TV commercial producers and music recording studios have expressed concern about economic conditions.
"We remain somewhat cautious about the economic climate," said Ken Sexton, chief financial officer, adding that the company would not issue guidance to investors about fourth-quarter revenue and earnings.
A company spokesman said Avid's move to a unified management structure will eliminate hundreds of redundant jobs and result in a one-time charge of as much as $24 million. The cuts will include 410 full-time employees - including 54 in Massachusetts and 20 in New Hampshire
Meanwhile, Avid has agreed to sell its Softimage business for $35 million to Autodesk Inc., a major maker of 3-D design software, removing a further 90 workers from Avid's payroll, and reducing full-time employees from 2,700 to 2,200.
2 comments:
avid, something ive come to hate.
but knowing that so many peoples lives are going to be completely affected by their job loss with avid is terrible. it makes me almost want to go buy the software for my personal use...i said almost.
the fact that alot of their production consumers are still going strong makes me feel like i may still have a chance once i graduate in december in the midst of an economic struggle.
This just reinforces everything that we have been told by Dr. Pitts. It's a tough market for everybody right now, and especially for media people. It's really unfortunate that these kind of things are happening, and I hope that job cuts across the board are limited. It's going to be interesting to see the effect that the economy has on media companies throughout the next few years. Hopefully everything improves and jobs will be available to everyone!
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