GameHouse loses executives as part of RealNetworks' reorganisation

The long, slow metamorphosis of RealNetworks continues, with the company reporting a significant reorganisation as well as further layoffs.

Around 85 jobs have been lost this week, mainly from its Seattle hub.

These include around 25 percent of RealNetworks' executive team, as the company further consolidated its technology products and solutions, and media software and services teams.

"This reorganisation marks a significant milestone in our transformation of RealNetworks," said Bob Kimball, president and acting CEO.

"Restructuring RealNetworks into functional groups creates a far more efficient organisation focused on developing great products that can be delivered through any of our distribution partners."

The axe also fell on its GameHouse mobile and casual gaming division, which was recently relocated into Real's main headquarters office in Seattle and will lose senior managers.

It's still planned that GameHouse will be spun out as a separate company at some point during 2010 however. The division had revenues of $30 million during Q1 2010, and $123 million for FY2009.

As a result of the reorganisation and reduction in office space, Real expects to record restructuring charges of approximately $10 million for the quarter ending June 30, 2010.

Approximately $3 million of this is related to the job cuts while around $7 million will be recorded as a loss on excess office facilities.

[source: RealNetworks]