KIT digital cuts 22% of staff
Editor | 18-09-2012
Video management software and services company KIT digital is to axe over a fifth of its workforce in a programme of ‘significant’ cuts designed to generate net cash savings in the region of $40 million annually.
Upon completion of this latest phase in a restructuring programme announced earlier this year, the company will have achieved a net reduction in workforce of approximately 300 employees, or 22% of its total headcount.
KIT digital currently supplies video asset management systems to nearly 2,500 clients in 50+ countries including AT&T, BBC, BSkyB, Disney-ABC, Google, HP, Mediaset, MTV, News Corp, RCS Media Group, Sky Deutschland, Sky Italia, Telefónica O2, Universal Studios, Verizon, and Vodafone. The company has given the guarantee that as these moves take place it will not compromise on customer service and technical delivery . It assures that the majority of expense reductions will arise from non-core areas and general and administrative redundancies.
Furthermore, KIT asserts that it will continue to invest in its core competencies such as the KIT Cosmos video content management system (VCMS) software, supported by Managed Services and Professional Services, and the KIT Cloud web-based video-asset management system.
“By accelerating the integration of the company, we will be able to enhance our product offerings, improve time-to-market efficiency, and bring the business to a place of financial strength,” explained Peter Heiland, KIT digital’s interim Chief Executive Officer. “While we have completed some non-core divestures and reduced the non-essential support infrastructure, we are preserving all of the strategic initiatives surrounding our core competencies as we believe they will drive significant growth.”
The redundancies will take place primarily during the third quarter of 2012 and will be completed by the end of calendar year 2012. The company currently estimates that it will record a restructuring expense in the third quarter of 2012 of approximately $4.0 million.