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Kit Digital to cut workforce by 22 percentUS-KITDIGITALINC-JOBS:Kit Digital to cut workforce by 22 percent
(Reuters) - Video technology provider Kit Digital Inc said it would cut 300 jobs, or 22 percent of its workforce, in the third quarter to reduce costs.
Kit Digital, whose cloud-based system enables clients to broadcast digital videos across several devices, expects to record a restructuring charge of about $4 million in the current quarter.
The company, which never made a profit since its 2009 Nasdaq listing, said it expects to save about $40 million annually in employee-related expenses from the job cuts that will be completed by the end of this year.
Kit Digital, which counts technology, entertainment and media giants such as Google Inc, Hewlett Packard Co, Disney-ABC, MTV and BBC among its clients, said in June that it was in talks with several buyers.
The company named shareholder Peter Heiland chief executive in August, replacing recently appointed CEO Barak Bar-Cohen.
It also lost four directors in March and has recently appointed a new chief financial officer and a chief technology officer.
Kit Digital shares, which have lost close to 70 percent of their value in the last one year, closed at $3.01 on the Nasdaq on Friday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das)
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