New York, NY (March 3, 2016)—It’s a uneasy week for Burlington, MA-based Avid. Sunday night’s Academy Awards underlined the company’s crucial role in modern media—every winner and nominee for Best Picture, Film Editing, Sound Editing, Sound Mixing and Original Score used Avid products—but the purveyor of industry mainstay Pro Tools and other creative media tools is having a more challenging time capitalizing on that success.
The turn of the month saw Avid announce it is taking action to improve its efficiency, expecting to save up to $68 million annually. Up to two-thirds of that will 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. According to reports, the company had a workforce of 1,413 employees at the end of 2014.
Concurrently, Avid has shored up its immediate future by entering into a new five-year, $105 million credit line that will be used for downsizing efforts, other initiatives and paying off the remainder of a $35 million loan, expecting to result in about $70 million to work with going forward.
Going forward will mean concentrating further on its Avid Everywhere strategy, uniting all of its products on the Avid Media Central platform. The company reports more than 32,000 Media Central licenses have been purchased by clients, including a notable contract with Sinclair Broadcast Group, signed in December 2015, which will use Avid products in its 64 local TV stations.
“We’re pleased that the growing adoption, stability and maturation of the Media Central Platform will now allow us to fully realize its potential to drive a more efficient operating model by eliminating components and processes that are no longer required with a single global platform.” said Louis Hernandez, Jr, chairman, president and CEO, in a statement.
He added, “For Avid, 2016 will be marked by a focus on additional platform-enabled growth and efficiency initiatives, which will demonstrate our ability to generate a meaningful financial return for our shareholders.”