MetaCreations is to "significantly restructure" its business, resulting in 100 job losses. The company’s CEO has also resigned.
According to a company press release, MetaCreations has decided to focus solely on e-commerce vizualization solutions for the Web - centred around its MetaStream 3D technology – and will divest its graphics software assets that do not complement this strategy. Graphics titles currently produced by MetaCreations include Painter and KPT (Kai’s Power Tools).
The restructure will mean approximately 100 staff – all involved in the professional graphics business – will be laid-off by the end of the year.
As a result of this decision, the company expects to report a loss of around $38-42 million this quarter. However, cash balance will remain strong, the company said.
In a separate announcement, the company said that CEO Gary Lauer is resigning to join another company. He will be replaced by Mark Zimmer, currently the president of MetaCreations’ business graphics division. Zimmer was co-founder and CEO of Fractal Design, which merged into MetaCreations.
Lauer, who is also the company’s president and chairman, will remain on the board of directors as chairman.