YuMe Inc. on Oct. 2 adopted a plan to restructure and streamline certain of its operations to reduce its operating expenses and streamline and focus its European operations on its programmatic business.
YuMe, which is in the process of being acquired by RhythmOne Plc, expects the restructuring plan will focus on its operations in the United Kingdom and will be implemented before the end of the first quarter of 2018. The company expects to save between $400,000 and $600,000 in costs in the fourth quarter under the restructuring plan, according to an Oct. 6 SEC filing.
The company plans to reduce its workforce by about 3% by year-end. The company currently expects the workforce reduction to result in one-time severance costs of about $200,000 in the fourth quarter. All other actions under the plan, including the real estate consolidation, are expected to result in costs between roughly $100,000 and $300,000.
RhythmOne in September agreed to acquire all of the issued and to-be-issued share capital in YuMe for a total consideration of about $185 million. The U.S. Federal Trade Commission recently approved the deal.