Limelight Networks announced that the company is aiming for improved execution, profitability, and accelerated growth with new actions. The company’s workforce has decreased by approximately 16% and results in a first-quarter pre-tax cash charge of approximately $3 million related to severance, benefits, and transition assistance.
Limelight is taking the following steps to improve its core CDN business, specifically, client performance and operating efficiency:
- Implemented a simplified operating model that improves agility and productivity;
- Prioritized resources on the continuous proactive improvement of client performance; and,
- Improved organizational productivity that results in an annual cash cost savings of approximately $15 million – including a targeted workforce reduction.
Bob Lyons, President and Chief Executive Officer, Limelight Networks, said,
“During our year-end conference call, we shared a refined strategy to ensure our near- and long-term success that focuses on three key areas. The first is improving our core CDN business by pursuing a leadership position in proactive client performance while improving our cost structure. 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.”
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