Brightcove Inc., a video streaming company, is cutting 10% from its workforce due to "near-term challenges" in revenue.
Brightcove Inc., a video streaming company, is laying off 10% of its employees due to "near-term challenges" in revenue.
The Boston-based technology company (Nasdaq : BCOV), announced the layoffs on Wednesday, in conjunction with its earnings report for the first quarter of 2023. Brightcove had 725 employees at the end last year. The layoffs are equivalent to about 70 people.
Sara Griggs did not respond to questions immediately about the reductions. In an email, she wrote that the 10% cut in headcount was for the entire organization.
Brightcove's CEO Marc DeBevoise said that Brightcove had seen "strength in" its new business growth during the first quarter.
DeBevoise stated in his statement that "this new business performance, which includes signing our largest-ever new business deal, with a global media company helps demonstrate the opportunity Brightcove has ahead of it on a long-term basis." "However certain near-term challenges in revenue, such as longer sales cycles, lower overages, and reduced entitlement commitments are forcing us to take significant steps to improve our costs structure. This will ensure that we operate our business efficiently and reach our full-year profitability targets."
The reduction in the workforce is expected to save over $10 million by 2023, and more than $13 million on a run-rate annual basis. Additionally, there will be charges of around $2 million for employee termination.
Many tech companies have cut costs in recent months due to a business slowdown. Yamini Rangan, CEO of HubSpot Inc. in the Bay State, cited "a perfect hurricane of inflation, volatile currency, tighter budgets for customers, and longer decision-making cycles" as a reason why hundreds of jobs were cut.