Limelight Networks sheds 16% of staff
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Editor
| 19 March 2021
As the company proceeds with its recently announced corporate realignment, video delivery and edge cloud access services provider Limelight Networks has decreased the company’s workforce by approximately 16%.
LImelight 8March2020
The company said that its action was designed to ensure that it could improve execution, profitability and accelerate growth and improve its core CDN business, specifically, client performance and operating efficiency. The reduction in workforce will result in a first-quarter pre-tax cash charge of approximately $3 million related to severance, benefits and transition assistance.

“This reduction in force, while difficult, is an essential part of the disciplined planning and work we need to accomplish to capture the significant opportunity ahead of us,” said president and chief executive officer Bob Lyons. “Our efforts to date give us confidence that we will be able to achieve 2021 adjusted EBITDA between $20 and $30 million. We will provide additional financial guidance in connection with our first quarter earnings release.”

The recovery strategy will focus on a number of key areas. The first is improving core CDN business by pursuing what the company says will be a leadership position in proactive client performance while improving cost structure and Limelight said that the actions it was take would result in improved growth and profitability by expanding core business and securing greater share of traffic and spend from existing customers. Additionally, it was exploring opportunities that extend its core business.

Including the workforce reduction, the company said that it was confident that what it called improved organisational productivity would see annual cash cost savings of approximately $15 million.