Layoffs at Real
This morning we told about 130 employees around the world that we are eliminating their positions at the end of the year. That’s roughly 7.5 percent of our worldwide employment base.
The layoffs, in addition to other cost cutting measures, are part of a budgeting process that is intended to bring expenses in line with current and prospective economic realities. While our business has not been affected as much as many others, we aren‘t immune to what’s going on in the broader economy.
To put this in context, we still expect to report record revenue for the year, and as our strong balance sheet would suggest, we are well positioned to take advantage of strategic growth and investment opportunities as they arise. In order to stay healthy, we need to get our costs in line with revenue expectations.
Although it is easy to understand—at an intellectual level, anyway—how budget cuts and layoffs help preserve a company’s financial strength, it really does not make the sobering task at hand any easier. Telling someone that you’re eliminating their position is among the most difficult conversations a manager can have. Earlier this morning I initiated such a discussion with a member of my team whom I respect and value.
The people who are losing their jobs will have time to transition their work through the end of the year. No one is being shown the door today. Departing employees can conduct job searches for other positions at Real or elsewhere from their offices here, or, if they prefer, from home. Everyone will remain on the payroll through the end of the year, plus each will be offered a cash severance package based on their length of service. Because of the unusual and difficult economic times, these severance packages include outplacement services and six months of COBRA healthcare coverage.
I know many of the people who are leaving. They are sharp, hard working and dedicated. It is hard to say goodbye, but I am confident they will land well.
Bill Hankes, VP, Corporate Communications, RealNetworks
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