Avid restructures and refinances for greater efficiency

Avid is adopting a restructuring plan, scheduled to be completed by the end of the second quarter of 2017.

The company has announced that the restructuring plan includes “reductions in workforce, facility consolidation, transferring resources to lower cost regions and reducing other third-party services costs.”

These actions will enable Avid to more efficiently operate in a leaner, and more directed cost structure.

Avid says these actions represent “the final phase of talent alignment and facilities rationalisation programme – Avid is putting the right people in the right roles in the right locations with the right cost structure which will position Avid for the end of its transformation in 2017. In connection with this effort, redundant offices will also be closed or downsized.”

“Since we began Avid’s transformation, the Avid Everywhere vision – to build our portfolio of products as applications on a single platform, the Avid Media Central platform – has been central to our strategy to solve the industry’s most important issues with greater innovation, flexibility and efficiency. Avid is in the final stretches of its dramatic transformation and 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 of Avid.

The company “expects to incur incremental cash expenditures of approximately $25 million relating to termination benefits, facility costs, employee overlap expenses and related actions.”

Approximately $14 million of the expenditures will be recorded as restructuring expenses in the quarters ending December 31, 2015 through June 30, 2017.