Avid restructuring continues, with new offices in Asia and Europe7 June 2016
Cost-cutting efforts first announced by Avid three months ago are starting to take shape, as the company revealed it has shifted much of its product development, R&D and customer support overseas, expanding those departments with new workplaces in Asia and Europe, writes Pro Sound News US edition‘s Clive Young. A reported 250 new employees have been hired to staff new facilities in the Philippines, Taiwan and Poland, and a new administrative support centre has also been created in Boca Raton, Florida.
Avid first indicated changes were afoot in early March when the company announced plans to save up to $68 million annually in coming years by improving its efficiency. Up to two-thirds of that would be realised 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. That said, the company reports that $33 million of those annualised costs savings had already been executed on by end of Q1 2016.
Avid’s new global shared services and support centre is based in Manila, Philippines, where the company’s technical support team will provide 24-hour coverage for customers worldwide; team members reportedly have an average of 10 years’ experience with their product specializations.
Meanwhile, Taipei City, Taiwan is the home of a new hardware design centre, providing proximity to the company’s supply chain.
A new R&D facility is located in Szczecin, Poland near a number of universities which the company plans to work with to develop new software and hardware for real-time video and graphics. Additionally, the Szczecin office includes senior staff for engineering, customer care and professional services.
In a statement, Avid noted that it is “committed to further investment in major US media markets, with more information coming later in 2016.”
“Avid is a global company, and we are focused on providing the industry-leading innovation and support that our customers around the world need,” said Avid chairman, president and CEO Louis Hernandez, Jr. “To support our aggressive growth strategy, we reassessed our global footprint to bring our people and facilities closer to clients. This strategic realignment reinforces our valuable heritage knowledge by adding hundreds of experienced industry experts at state-of-the-art facilities worldwide, putting Avid in the best position to serve customers.”
Serving customers is key to any business, but as Avid continues a transition to a subscription model, it will only become even more crucial. With that in mind, however, there are signs that the subscription strategy is taking hold. The company’s Q1 2016 results noted that user adoption of the MediaCentral platform is up 51% over the same quarter in 2015, with digital sales up 46% and the number of paying subscribers up three times year-on-year as well. All of that was part of a larger announcement of Q1 2016 revenue of $143.5 million – a 20% jump over Q1 2015 revenue of $119.6 million.
The main pictures shows Avid CEO Louis Hernandez, Jr at NAMM 2016 discussing the uptake of Avid Everywhere (even on the moon, it seems…)
This article first appeared in Pro Sound News (US edition), June 2016