OpenTV slashes 47% of staff, to close 8 offices

Interactive TV company OpenTV said it would eliminate 315 positions--about 47% of its workforce--and close eight regional offices by the end of next year’s first quarter. The restructuring comes on the heels of OpenTV’s acquisition of Wink Communications, which the company said will continue to operate as a separate subsidiary and will be an important part of OpenTV’s ongoing strategy.

OpenTV said it hopes to reduce cash burn from $60 million to $48 million in the second quarter of next year. The company blamed the restructuring on “the current economic environment in the cable and satellite industries.”

In a statement, OpenTV CEO James Ackerman said the move was the result of “some significant changes in the business strategies of the company. We sincerely regret the consequences of this plan on those of our team we must let go, but we know that ultimately this difficult decision is in the best interests of our shareholders, remaining employees and customers,” he continued.

OpenTV, headquartered in Mountain View, Calif., has regional offices throughout the U.S., Europe and Asia/Pacific. It did not detail which of those offices would be closed.--Jim Barthold, senior editor