Avid to cut workforce and sell consumer businesses

Avid said it was taking the “strategic actions” in order to focus on its media enterprise and post and professional services customers.

Avid also plans to reduce headcount by 20%, a move that could result in a restructuring charge of up to £14.6m ($23m).

General manager for Europe, the Middle East and Africa Tom Cordiner said: “While some employees will transfer as part of the sale, the changes announced on Monday will not have any impact on the infrastructure of our core media enterprise and post and professional business in Avid UK.”

Avid is selling its M-Audio keyboards, controllers, interfaces, speakers and digital DJ equipment and other product lines to inMusic, the parent company of Akai Professional, Alesis and Numark.

The company’s consumer video editing line, including Avid Studio, Pinnacle Studio and the Avid Studio App for the Apple iPad  is being sold to Corel Corporation.

The consumer product lines contributed some £58m ($91m) of Avid’s 2011 revenue of £431m ($677m).

Avid estimates the sales will generate approximately £10.8m ($17m).

“The changes we are announcing today make Avid a more focused and agile company,” said Avid chief executive Gary Greenfield.

“By streamlining and simplifying operations, we expect to deliver improved financial performance and partner more closely with our enterprise and professional customers.

“Our objective remains to provide these customers with the innovative solutions that allow them to create the most listened to, most watched and most loved media in the world. I’m excited about our future prospects.”