RealNetworks is cutting its staff by 11% as it begins to focus on the latest launch of its Helix streaming media platform and RealOne consumer service.
According to Rob Glaser, CEO of RealNetworks, the impact of the on-going turbulence in the telecommunications industry and the weak capital spending environment of its systems business has caused the company to step back and review fully its strategy and operations.
Another hindrance to the company’s operations is the intense competition that it faces from Microsoft in the server market. In order to prevent Microsoft’s dominance, RealNetworks, in July of this year, launched Helix, which has opened up source code to its streaming servers, along with the ability to stream Windows media files. The latter has brought concerns of a possible legal action from Microsoft.
Real has also made plans to focus its international operations around its two core areas of Helix and RealOne. The company has not yet announced where the reduced headcounts will occur, or which products it will discontinue.