RealNetworks cuts staff by 70

RealNetworks, which reported better than expected quarterly financial numbers last week, confirmed today that it is cutting 70 positions as it reduces expenses in a down economy.

The cuts represent about 4 percent of the Seattle digital media company's 1,700 employees worldwide. About 25 of the jobs being eliminated are in Seattle, according to company spokesman Bill Hankes.

Last week, RealNetworks reported third quarter profit of $1.5 million on sales of $140.3 million. That compares with a loss of $4.5 million and sales of $152.0 million a year ago.

Despite the reduction in force, the company could be hiring in selected areas.

Hankes noted that RealNetworks is investing in mobile, as well as in technology on the iPhone and Facebook platforms.

The staff cutbacks follow Microsoft's announcement Wednesday that it was trimming 800 jobs, about 200 of them in the Seattle area The RealNetwork reductions come nearly a year after the company axed about 130 positions at the end of 2008.