OpenTV is doing a little house cleaning. The interactive TV software developer is cutting its staff nearly in half and closing some regional offices to reduce expenses.
To pare expenses and make efficiency adjustments related to OpenTV's recent purchase of Wink Communications Inc., the company said it plans to eliminate 315 positions and close eight regional offices by the end of the first quarter of 2003. The move will save the company roughly $60 million annually once the restructuring is complete. The company expects to take a $29 million pre-tax charge related to the restructuring. This charge is in addition to the previously announced $4.1 million pre-tax charge related to OpenTV's acquisition of Wink.
"Given the challenging economic environment and also as a result of some significant changes in the business strategies of the company, OpenTV is taking the necessary actions to streamline and right-size the company's operations," OpenTV CEO James Ackerman said in a prepared statement.
Liberty Media Corp. purchased a controlling interest in OpenTV in May for $185 million. Last month, OpenTV agreed to purchase Wink from Liberty for roughly $100 million.