Limelight Networks, which competes with Akamai Technologies in providing content delivery networking to firms that want to distribute videos and software, this afternoon said it will cut 16% of its staff in a workforce rebalancing that will save the company $15 million annually.
Said Limelight's CEO, Bob Lyons, the job cuts are reflective of a strategy outlined in February to make the company more streamlined.
"This reduction in force, while difficult, is an essential part of the disciplined planning and work we need to accomplish to capture the significant opportunity ahead of us. Our efforts to date give us confidence that we will be able to achieve 2021 adjusted EBITDA between $20 and $30 million. We will provide additional financial guidance in connection with our first quarter earnings release.
Limelight said the job cuts are one among multiple actions to "improve execution, profitability and accelerate growth," by simplifying its organizational structure, improving productivity, and "prioritizing resources."
Said Lyons, the actions are in keeping with an intent to "improve our core CDN business by pursuing a leadership position in proactive client performance while improving our cost structure.
Added Lyons, "The actions we are announcing today are the first step, and we expect to continue to improve our growth and profitability by also expanding our core business, securing greater share of traffic and spend from existing customers while also growing our pipeline of new opportunities.
"Additionally, we are exploring opportunities that extend our core business. I am encouraged by the progress we have made in our first 30 days and the actions we have taken."