RealNetworks cuts executive bloat, restructures

RealNetworks cut 25 percent of its executives and 85 positions as it tries to refocus on growth.

RealNetworks on Tuesday cut 25 percent of its executives as it tries to refocus on growth.

Overall, RealNetworks cut 85 positions. According to RealNetworks, the aim is to "reduce the spans and layers of management to create greater efficiency, teamwork and customer focus."

In a nutshell, RealNetworks consolidated its technology products, media software and services groups. The company also consolidated office space in Europe, Asia and Seattle. RealNetworks said it will take a charge of $10 million in the June quarter. Of that sum, $3 million is related to the layoffs.

The big question here revolves around RealNetworks products. The company can be leaner and meaner, but it still needs something to sell. RealNetworks and Viacom spun off Rhapsody as an independent company, but needs a next act. Simply put, it's unclear whether RealPlayer can sustain the company.

Restructurings will only go so far.