Avid Restructuring Continues

Cost-cutting efforts first announced by Avid two months ago are starting to take shape, as the company revealed it has shifted much of its product development, R&D and customer support overseas, expanding those departments with new workplaces in Asia and Europe. A reported 250 new employees have been hired to staff new facilities in the Philippines, Taiwan and Poland, and a new administrative support center has also been created in Boca Raton, Florida.
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Burlington, MA (May 3, 2016)—Cost-cutting efforts first announced by Avid two months ago are starting to take shape, as the company revealed it has shifted much of its product development, R&D and customer support overseas, expanding those departments with new workplaces in Asia and Europe. A reported 250 new employees have been hired to staff new facilities in the Philippines, Taiwan and Poland, and a new administrative support center has also been created in Boca Raton, Florida.

Avid first indicated changes were afoot in early March when the company announced plans to save up to $68 million annually in coming years by improving its efficiency. Up to two-thirds of that would be realized by layoffs and the resultant closing or downsizing of multiple offices—an effort that the company expects will cost $25 million to complete over the next year.

Avid’s new global shared services and support center is based in Manila, Philippines, where the company’s technical support team will provide 24-hour coverage for customers worldwide; team members reportedly have an average of 10 years’ experience with their product specializations. Meanwhile, Taipei City, Taiwan is the home of a new hardware design center, providing proximity to the company’s supply chain.

A new R&D facility is located in Szczecin, Poland near a number of universities which the company plans to work with to develop new software and hardware for real-time video and graphics. Additionally, the Szczecin office includes veteran staff for engineering, customer care and professional services.

In a statement, Avid noted that it is “committed to further investment in major U.S. media markets, with more information coming later in 2016.”

“Avid is a global company, and we are focused on providing the industry-leading innovation and support that our customers around the world need,” said Avid chairman, president and CEO Louis Hernandez, Jr. “To support our aggressive growth strategy, we reassessed our global footprint to bring our people and facilities closer to clients. This strategic realignment reinforces our valuable heritage knowledge by adding hundreds of experienced industry experts at state-of-the-art facilities worldwide, putting Avid in the best position to serve customers moving forward.”

Avid’s earnings for the first quarter of 2016 are expected to be released on May 10. John Frederick, the company’s chief financial officer, executive vice president and chief administrative officer since 2013, announced in mid-April that he will resign for personal reasons following the company’s quarterly earnings call.

Avid
www.avid.com